N.Y.’s AIG to Buy DP World’s U.S. Ports Division

DP World, a United Arab Emirates (UAE)-based ports operators, has sold its division that oversees a number of U.S. ports, as was agreed upon earlier this year as part of a deal with the U.S. Congress, the Associated Press reports via Houston Chronicle online.

AIG, a New York-based insurance firm, said its Global Investments Group will purchase the U.S. port operations for an undisclosed amount from P&O Ports North America, the AP reports.  DP World owns P&O Holdings, and P&O Ports North America is a subsidiary of that group, according to the AP.

When DP World bought Peninsular and Oriental Steam and Navigation (P&O), a British ports operator, earlier this year it acquired control of a number of U.S. ports, and sparked a fire storm of concern on the part of the American public and the U.S. Congress over the fact that an Arab entity would be in charge of U.S. ports management.  Those parties feared that such control of operations at the U.S. ports could raise the risk of those locales being used for terrorism purposes.  In a move meant to alleviate the concerns, DP World said it would sell off the management of the U.S. ports at issue, according to the AP.

DP World said the division it sold off includes operations of ports in New York, New Jersey, Pennsylvania, Maryland, Florida and Louisiana, among others.

Related Links:

• Selling U.S. Ports to Dubai: Bad Security of Just Bad Politics?

• Dubai or Not Dubai?

• Dubai Ports Takeover Delayed

• Bush Urged to Block Dubai Ports Deal

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-Compiled by Al Sacco