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Undoing the Dubai deal
The announcement by a Dubai based company, DP World, of abandoning plans to assume control of six US sea ports as part of its acquisition of the P&O company, have left a big question mark. Two days after it had said that it will still go ahead with the deal, the company has said that it will transfer operations for the US ports to an American entity.
This decision is seen as a setback for US President George Bush who initially supported the take over. He was facing resistance from Congress, despite the fact that it is dominated by his own Republican party. President Bush said that cancelling the deal, which had been vetted by his government, would give the wrong signal to America’s allies around the world. But American opposition to the takeover of US ports by an Arab operator was so stiff that finally Mr Bush had to step down.
This development has far reaching implications for international business. It also tells a lot about the American psyche. As companies from the developing world are now reaching out to acquire bigger entities in the West, the developed world is reacting with xenophobia.
Take the example of the bid by Indian steel magnate to take over a French concern. Again this is being opposed for all the wrong reasons. At a time when globalisation is taking roots, one can only wonder why the West preaches lifting of barriers to lower income countries, but is unable to heed its own advice. The incident also brings to the forefront the resentment in some US quarters to Arab and Muslim interests, regardless of how legitimate they are. This naturally is a cause for concern for all and not just the UAE
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