S. 4734 — Critical Defense Ownership Review Act

This section prohibits an investment company from acquiring a direct or indirect equity interest of at least 25 percent or control of a major defense supplier without prior Department of Defense review. It requires parties to submit a premerger notification to the Department of Defense, which must assess the transaction's effects on national security, competition for contracts, critical supplies, financial stability of the supplier, and other factors, and report its findings to the Federal Trade Commission or the Department of Justice within 30 days.

This section directs the Assistant Secretary of Defense for Industrial Base Policy to triennially review merger and acquisition activity among major defense suppliers, including the resulting financial health of the firms and any effects on the supply of essential goods or services for the Department of Defense mission. It requires the Secretary of Defense for Industrial Base Policy to submit a report on the findings for the prior three fiscal years to the congressional defense committees by December 31, 2027, and triennially thereafter.