Monday, March 27, 2006

Dubai ports fiasco, round 2

Will everyone get their knickers in a bunch about this as well? (via Counterterrorism Blog)

Dubai International Capital, an investment company owned by the emirate's ruling al-Maktoum family, inked a deal last year to acquire a privately held British aerospace company called Doncasters Group, Ltd. The company owns nine plants in the United States, and makes parts for U.S. tanks and military planes, including for the Joint Strike Fighter -- currently at the center of a transatlantic row about contracts and technology sharing.

After senators questioned officials about the Doncasters deal earlier this month, the secretive inter-agency panel known as the Committee on Foreign Investment in the United States, or CFIUS, which is responsible for assessing such takeovers, announced that it was launching a special 45-day national security review of the purchase. The attention led Dubai International Capital to announce last week it was postponing the $1.2 billion takeover for two months while the CFIUS review went ahead.

Certainly they can't think this is worse than the DP World transaction that would have given them control over operations at several US ports. On the other hand, everyone just about went apoplectic over the ports deal (an overreaction in my opinion), so I'm not going to even try to speculate on what they're going to think about this one.

Please, please, please don't kill this deal just because it's the UAE.