DP World Offers To Submit To Second US Review

by Glen Shapiro, LawAndTax-News.com, New York

28 February 2006

Dubai-based DP World has offered to submit its proposed takeover of the UK's P&O (which also operates ports in the United States) to additional scrutiny in the form of a second review of potential national security concerns.

The firm had announced last week that it would ring-fence P&O's US operations as part of its takeover of the UK firm, at least until concerns expressed by US lawmakers regarding the deal had been addressed, but has now shown itself willing to take extra steps to reassure the US Congress and the American public.

During the 45 day second review of its plans, and following completion of the proposed takeover on March 2, a UK citizen will be placed in charge of its US operations in Baltimore, New Jersey, New Orleans, New York, Miami and Philadelphia.

"We hope that voluntarily agreeing to further scrutiny demonstrates our commitment to our long-standing relationship with the United States," chief operating officer Edward Bilkey told the Associated Press.

The Committee on Foreign Investment in the United States (CFIUS) published a statement at the weekend welcoming the announcement.

"Upon receipt of the new notification, CFIUS will promptly initiate the review process and fulfill DPW's request for a full investigation," it explained, continuing:

"Over a nearly three-month period starting in October 2005, representatives of the 12 departments and agencies that comprise CFIUS, with assistance from the Intelligence Community, thoroughly investigated the transaction for national security concerns. CFIUS brought the Departments of Transportation and Energy into the review process to widen the scope and expertise of the national security scrutiny. These agencies will again be invited to participate in this new review process."

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