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Dubai completes US$1.3 billion acquisition of Doncasters

DUBAI - Dubai International Capital said on Sunday it had completed its acquisition of Doncasters Group Ltd, which operates several US manufacturing plants that make parts for US military vehicles and aircraft. The White House approved the US$1.3 billion (euro 1.02 billion) deal last week after a two-month review satisfied some American lawmakers who earlier blocked a Dubai company’s attempt to buy a British firm that operated several US ports.

“Dubai International Capital is pleased to have successfully completed its acquisition of Doncasters,” said Sameer Al Ansari, company CEO. “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.”

The deal followed a fierce and much-publicized battle between The White House and Congress over Dubai Ports World’s bid for control of six US ports.

Government-owned Dubai Ports World was forced to give up control of six US ports it had bought from Peninsular and Oriental Steam Navigation Co. after that deal provoked concerns over the national security implications of the Arab company running several US ports.

Initial reaction from Congress indicated that there would not be the opposition to the deal that prevented the DP World deal.

Last week, US President George W. Bush said he signed off on the deal after it was “looked at very carefully.”

The sale was reviewed by the Committee on Foreign Investment in the United States, a secret, interagency US government panel that is charged with reviewing foreign transactions that touch on military or security matters.

Dubai International Capital bought Doncasters, which operates nine facilities and employs about 1,000 people in the US, 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.