In August 2025, Czech arms company Colt CZ Group SE announced an agreement to acquire Synthesia Nitrocellulose, a key European supplier of propellant materials, in a two-phase transaction valued at approximately CZK 22 billion. The deal includes an initial purchase of a 51% stake through a mix of cash and shares, with the remainder to be completed following regulatory approvals expected in early 2026.

The acquisition also covers Synthesia’s power production division, worth CZK 1.4 billion, which will be paid entirely in new Colt shares. By integrating nitrocellulose production and energy assets, Colt aims to secure critical raw materials, reduce reliance on external suppliers, and support NATO’s defense readiness.

This move reflects Colt’s long-term strategy of vertical integration in the ammunition sector, enhancing its ability to produce medium and large-caliber rounds and reinforcing the Czech Republic’s role in Europe’s defense supply chain.

Source: reuters.com

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