DP World Won't Assume Control Of P And O's US Operations

by Lorys Charalambous, for LawAndTax-News.com, Cyprus

13 March 2006

As the takeover of UK port operator P&O by Dubai's DP World was finalised last week, the company announced that it would be selling the operation rights for P&O's US operations to a US company in order to calm the political furore over the deal in Congress.

DP World had offered to submit the takeover deal to a second review in the United States, and to ring-fence the US operations until such time as it was completed. However, according to reports in the national media last week, House and Senate leaders had privately told President Bush that the deal was likely to be blocked by Congress, and a key House Committee voted against it.

In a statement read to the Senate on Wednesday by Virginia Republican John Warner, DP World's chief operating officer Edward Bilkey announced that in order to preserve "the strong relationship" between the United Arab Emirates and the United States, "DP World will transfer fully the US operations of P&O Ports North American Inc. to a United States entity".

The statement reportedly went on to add that:

"This decision is based on an understanding that DPW will have time to effect the transfer in an orderly fashion and that it will not suffer economic loss."

According to the US media, Democrat and Republican lawmakers have vowed to press ahead with legislation designed to block such deals in the future.

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