Friday, March 03, 2006

UAE firm buys military company

A company from the United Arab Emirates, Dubai International Capital, has purchased a British firm, London-based Doncasters Group for $1.2 billion. Doncasters produces engine components and turbine blades for military platforms, and its clients include Boeing, General Electric, Honeywell and Pratt and Whitney
Let's see if the same kind of uproar that the port deal follows this deal. Again, this deal will have to undergo the same sort of review that the P&O deal did, but perhaps the Treasury department will use a bit more scrutiny when taking this into consideration.
Not that I believe that the Treasury screwed up necessarily in their review of that deal. I just think that their priority was to consider the money, as opposed to the security.
Look at the IBM deal where they sold their PC business to Lenovo, a Chinese company. Was that something that was reviewed as deep as it should have been?
And why is it that foreign companies are buying US-based companies at such a rapid clip of late? Perhaps it's the fact that our companies just aren't as strong as they once were. Daimler Benz buys Chrysler. Never would have seen that in the 70s or 80s. I'm waiting for Mitsubishi or one of the second tier Japanese companies to buy Ford. Based upon their recent stock price, that wouldn't be that expensive!

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