The Czech competition authority has granted approval for Colt CZ Group SE to acquire exclusive control over Synthesia Nitrocellulose, a.s., and Synthesia Power, a.s. The authority determined that this merger will not lead to a substantial distortion of competition in the market.

Colt is a global player in the defense industry, primarily involved in the production and sale of firearms and ammunition, with some operations in tactical equipment such as optical solutions for weapons and ballistic vests. The company has manufacturing facilities in the Czech Republic.

Synthesia Nitrocellulose operates in the chemical industry, focusing on the production and sale of energetic and industrial nitrocellulose, inorganic acids, and their mixtures. Synthesia Power manages its own energy system, providing energy production and supply services for Synthesia Nitrocellulose's operations.

The activities of the merging parties do not overlap horizontally, nor are they directly vertically linked. However, there is a potential indirect vertical link between Synthesia Nitrocellulose, which produces energetic nitrocellulose supplied to gunpowder manufacturers, and Colt, which produces ammunition. Given the market shares of the merging parties in the production and sale of energetic nitrocellulose and ammunition within the EU and globally, the authority concluded that this connection is unlikely to disrupt competition.