Dubai, United Arab Emirates – A Dubai-owned company on Sunday announced the $1.3 billion purchase of Doncasters Group Ltd., which operates factories that make parts for U.S. military vehicles and aircraft.
The deal by Dubai International Capital comes two months after U.S. lawmakers stopped a different Dubai company from buying a British firm that helped operate six U.S. ports. The lawmakers cited national-security concerns about an Arab company running the ports.
The purchase passed two months of scrutiny by the Committee on Foreign Investments in the U.S., a 12-agency panel headed by the U.S. Treasury Department that reviews transactions involving national security.
The White House approved the deal last week, after American lawmakers said they were satisfied with the review.
“This acquisition allows Dubai International Capital to move forward with its investment strategy to build a diverse portfolio of direct investments across various industries around the world,” said company chief executive Sameer al-Ansari.
British-based Doncasters produces parts at plants in Connecticut and Georgia for the F-35 Joint Strike Fighter, a $256 billion multinational project, and the M-1 Abrams tank.
“This was a transaction that was thoroughly reviewed and closely scrutinized,” said White House spokesman Scott McClellan. “In the view of the committee, it does not compromise our national security.”
Initial congressional reaction indicated there would not be the opposition that prevented the deal by government-owned Dubai Ports World, which was forced to give up control of six U.S. ports it had bought from London-based Peninsular and Oriental Steam Navigation Co. for $6.8 billion.
Dubai International Capital bought Doncasters, which operates nine facilities and employs about 1,000 people in the U.S., from Royal Bank of Scotland Equity Finance.
The Dubai investment firm’s acquisition follows a series of other high-profile investments, including its $1 billion investment in DaimlerChrysler AG.
Dubai International Capital is the international investment arm of government-linked Dubai Holding, which has 19 companies that operate in a variety of sectors.
