Dubai Firm Seals Deal on Entry into U.S. Military Industry

AFP: A Dubai firm announced May 7 the conclusion of a deal to acquire a British supplier to the U.S. military, following U.S. President George W. Bush’s approval.

Dubai International Capital, an arm of the United Arab Emirates-owned Dubai Holding company, said it had “concluded the acquisition contract” for Britain’s Doncasters Group, in a deal that has been estimated at $1.27 billion.

The British engineering firm controls U.S. company Ross Catherall, which operates nine U.S. plants including one in Georgia that exclusively supplies turbine fan parts and airfoils for U.S. Army tanks and helicopters.

“Dubai International Capital’s takeover of Doncasters Group gives it the opportunity to move forward with its strategy of equipping itself with a diversified investment portfolio... in the world,” said Samir al-Ansari, executive president of the Emirati firm, quoted by the official WAM news agency.

The company promised to “consolidate Doncasters’ development perspectives and increase its growth on the global market while improving its delivery and assets to strengthen shareholder confidence.”

Bush announced on April 29 he had endorsed the green light given to the deal by the Committee on Foreign Investments in the United States (CFIUS), which was last in the news over a Dubai port operator’s thwarted bid to manage six U.S. ports.

Dubai International Capital said in December it was planning to acquire Britain’s Doncasters Group.

The deal has echoes of the transaction involving Dubai-owned DP World, which had won the rights to operate six U.S. ports through its takeover of British shipping company P and O.

But DP World was forced in March to relinquish its rights due to an outcry in the U.S. Congress over the security implications of a state-owned Arab company gaining control of the port operations.