After Dubai, United Arab Emirates-based DP World's attempt to acquire U.S. port facilities was thwarted in 2006, a much more stringent Cfius law passed Congress. Now merged companies that violate conditions imposed by Cfius can see their deals broken up after they've been consummated. And foreign state-controlled purchasers can expect to have longer Cfius reviews. The Treasury Department may draft new rules by November.
None of this is dissuading buyers. "People have been willing to endure [Cfius] because the U.S. defense industry market is so large, everybody wants a piece of it," says Trevor T. Bohn, vice president at McGladrey Capital Markets LLC in Costa Mesa, Calif.
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