Tuesday, May 28, 2013

Dubai Ports World in the USA (parts A, B, C)

WEBBER Douglas, BARTHON de MONTBAS Alexandre, LIAKHOV Konstantin, PARIKH Nihir, WIRZ Benoit, ZAKARIA Zuwairi 
©2013 INSEAD Case Study

The case recounts the experience of the Dubai government-owned marine terminal operator, Dubai Ports World, when it tried to take over the American operations of P&O in 2005-2006. It describes how, in the political environment following the 9/11 attacks, the prospect of a Middle-Eastern-owned firm taking over and operating terminal services in some 20 US ports generated such strong political opposition (notably in Congress) that, despite strong support from President George W. Bush, the firm ultimately withdrew its takeover bid.

Pedagogical Objectives: The main objectives of the case are: to highlight the nature of the political obstacles that can confront planned foreign investments in the US, especially when they raise security issues; to emphasize the central role played by Congress in US policy-making, even in areas where its formal powers of intervention seem to be very limited; and to facilitate discussion of how foreign investors can most effectively tackle opposition to proposed acquisitions.