Describes the policy implications in the United States from Dubai-based DP World, the acquisition of London-based Peninsular and Oriental Steam Navigation Company (P & O). Since P & O operated some port terminals in the United States, DP World received clearance from the Committee on Foreign Investment in the United States prior to P & O shareholders approved the deal in February 2006. Nevertheless, a tumult about port security both in Congress and in the press broke and this led to riots DP World pr … Read more »

Describes the policy implications in the United States from Dubai-based DP World, the acquisition of London-based Peninsula and Oriental Steam Navigation Company (P & O). Since P & O operated some port terminals in the United States, DP World received clearance from the Committee on Foreign Investment in the United States prior to P & O shareholders approved the deal in February 2006. Nevertheless, a tumult about port security both in Congress and in the press and this ruckus led DP World to broke promise that they, the U.S. terminals of P & O. Also give a brief description of Dubai and its relationship with the U.S., a discussion of issues related to port security and a brief history of U.S. security concerns with foreign direct investment. Ends with a presentation of the Bill unanimously passed by the U.S. House of Representatives and the Senate to further regulate foreign investment in the wake of DP World debacle.
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Julio J. Rotemberg
Source: Harvard Business School
21 pages.
Publication Date: Sep 14, in 2006. Prod #: 707 014 PDF-ENG
Dubai Ports World debacle and its aftermath HBR case solution

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