Critical Defense Ownership Review Act

This legislation mandates a prior review by the Department of Defense (DoD) for certain acquisitions where an investment company seeks to acquire at least a 25 percent equity interest or control of a major defense supplier. Parties to such "covered transactions" must submit a premerger notification, triggering a comprehensive DoD assessment.

The DoD's review will evaluate the transaction's impact on national security, the industrial and technological base, and competition for DoD contracts. It will also scrutinize potential restrictions on critical supplies, financial stability risks for the defense supplier, and any adverse effects on current or future DoD programs, including the investment company's financial stability and plans. Within 30 days, the Secretary of Defense must report these findings to relevant antitrust authorities.

Additionally, the bill establishes a triennial review of merger and acquisition activity involving major defense suppliers. This review assesses their financial health and the impact on essential goods and services, with findings reported to congressional defense committees.