WASHINGTON (AFP) - US President George W. Bush yesterday signed into a law a bill to strengthen government oversight of foreign takeovers of US firms in a bid to firm up national security.
The bill drew wide congressional support following outcry over Dubai Ports World's (DPW) acquisition of a company managing US port facilities, which prompted DPW to back away from the deal earlier this year.
The Foreign Investment and National Security Act reforms the Committee on Foreign Investment in the United States (CFIUS), the interagency body that reviews foreign acquisitions of US companies.
"This legislation will strengthen our national security by ensuring a thorough and high-level review of acquisitions of US companies by foreign firms that may present security considerations," the White House said in a statement.
"The legislation also demonstrates that America can meet the challenges of the post-9/11 world while continuing to welcome foreign investment that provides well-paying jobs and economic opportunity for our citizens."
The bill was drawn up in the wake of furor in Congress sparked by Dubai's state-owned port operator DPW's 6.9 billion dollar acquisition of P&O, including its subsidiary that operates six US ports.
Although US officials declined to block the deal, the Dubai government decided to abandon DPW's operations at the six ports. DPW said in March it had completed the sale of the disputed unit to AIG Global Investment Group.