A second United Arab Emirates company, Dubai International Capital LLC, confirmed Thursday that the U.S. has launched a national security investigation into one of its acquisitions.
Dubai International Capital in December announced a $1.2 billion deal to buy Doncasters Group Ltd., a British precision-engineering company with subsidiaries in the United States that make components used in engines for military aircraft and tanks. Despite the probe, the company said it’s confident the deal will still close.
“Dubai International Capital is pursuing all proper U.S. regulatory approvals regarding the acquisition of Doncasters Group Ltd. as is customary for international business transactions of this nature,” Dubai International Capital said in a statement.
“It is confident of obtaining those approvals and closing the transaction as originally envisioned,” the company said.
The Washington Post reported earlier Thursday that the Bush administration had notified congressional committees this week that the White House’s secretive Committee on Foreign Investment in the U.S. is investigating the security implications of Dubai International Capital’s acquisition.
The new investigation follows another recent U.S. probe into Dubai-based DP World’s purchase of London-based Peninsular and Oriental Steam Navigation Co. and the national security implications of the Arab company running several U.S. ports.
DP World is owned by the government of Dubai, one of the seven members of the United Arab Emirates. P&O provides services at more than 20 ports in the U.S., including operations in Baltimore, Miami, Newark, New Orleans, New York and Philadelphia.
Dubai International Capital bought Doncasters from Royal Bank of Scotland Equity Finance, the private equity arm of the Royal Bank of Scotland Group PLC.
