United States tightens rules on foreign acquisitions
President Bush has signed legislation outlining stricter rules on the acquisition of US companies by foreigners.
This move addresses national security concerns raised by Congress on the back of a controversial take-over of several US port facilities by DP World last year.
The new law holds regulators more accountable, requires regulators to spend more time vetting deals, and keeps Congress better informed about the Committee on Foreign Investment in the US.
“This will strengthen our security by ensuring a thorough and high-level review of acquisitions that may present security considerations,” said White House spokesman Tony Snow.
Legislation was introduced last year after critics in Congress said the committee did not take enough time to consider the security implications of the acquisition of some key US port operations by DP World.
The Bush administration had approved Arab-owned DP World's ownership of six terminals at major US ports through its acquisition of global port operator P&O Ports.
But after concerns were raised Port authorities proceeded to broker agreements which by February saw DP World relinquish and sell all its six terminals to the AIG Global Investment Group.
These 'tightened measures' are in contrast to recent announcements by the UK government in support of a 'market-led' approach to port policies.
UK Shipping Minister Jim Fitzpatrick had said that “commercial ports were best placed to make decisions about where and when to invest in the port sector.”
“Decisions on port investment must continue to be taken by ports themselves in response to commercial demand and should not be driven by other factors,” said UK Major Ports Group chairman Richard Everitt.
“It is understandable, American fears of compromised security, but this new legislation may turn out to be a bad thing economically,” said an industry player to Portworld.
“Now you ban the Arabs, next year you ban the Chinese, and then whichever country falls out of favour next, such global exclusion could be unhealthy for business,” he added.
This move addresses national security concerns raised by Congress on the back of a controversial take-over of several US port facilities by DP World last year.
The new law holds regulators more accountable, requires regulators to spend more time vetting deals, and keeps Congress better informed about the Committee on Foreign Investment in the US.
“This will strengthen our security by ensuring a thorough and high-level review of acquisitions that may present security considerations,” said White House spokesman Tony Snow.
Legislation was introduced last year after critics in Congress said the committee did not take enough time to consider the security implications of the acquisition of some key US port operations by DP World.
The Bush administration had approved Arab-owned DP World's ownership of six terminals at major US ports through its acquisition of global port operator P&O Ports.
But after concerns were raised Port authorities proceeded to broker agreements which by February saw DP World relinquish and sell all its six terminals to the AIG Global Investment Group.
These 'tightened measures' are in contrast to recent announcements by the UK government in support of a 'market-led' approach to port policies.
UK Shipping Minister Jim Fitzpatrick had said that “commercial ports were best placed to make decisions about where and when to invest in the port sector.”
“Decisions on port investment must continue to be taken by ports themselves in response to commercial demand and should not be driven by other factors,” said UK Major Ports Group chairman Richard Everitt.
“It is understandable, American fears of compromised security, but this new legislation may turn out to be a bad thing economically,” said an industry player to Portworld.
“Now you ban the Arabs, next year you ban the Chinese, and then whichever country falls out of favour next, such global exclusion could be unhealthy for business,” he added.