Your World Today

On the topic of acquisitions, it appears that at least four US lobby groups are succeeding in brokering a deal that would see Dubai Aviation Enterprise (DAE) purchase the aviation arm of the Carlyle Group for about $1.6 billion USD. Those who disclosed so far are reporting a price tag of around $200,000 for their efforts, plus expenses.

More information on the news can be found at Zawya.

Whoudathunkit? A Dubai firm acquiring a stake in American aviation? After the stink raised by Congress in 2006 about Dubai Ports World coming to own some US port holdings as part of their takeover of the British P&O company? DP World was forced to sell off the US holdings of P&O to an American operator for an undisclosed amount.

I guess I am glad to see that the government of Dubai (a shareholder of DAE) learned their lesson from the DP World experience and discovered that the path to American acquisition is through Capitol Hill. Even with the President on your side (Bush threatened to Vito Congress’ decision to block the DP World deal in 2006), you must win the politicians to do business in the USA.

I am certain that Flaherty, Canada’s Federal Minister of Finance, is keeping a close eye on this deal. With his recent announcement of the Tory intention to “spell out the grounds on which Ottawa could block unwelcome corporate takeovers by foreign, state-owned companies”, Flaherty is faced with the same concerns in Canada that were expressed by US Congress during the DP World debacle.

It’s time for Canadian lobbyists and PA consultants to sharpen their teeth and get involved in the policy development stage of Canada’s new effort. John Duffy, that next $200k of Dubai’s sour black gold could be yours!

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