Officials said that neither the Bush administration nor Congress would
block a purchase by the UAE state-owned Dubai Aerospace Enterprise of two
U.S. aerospace companies. They said the proposed DAE purchase of Landmark
Aviation and Standard Aero Holdings Inc. would not be deemed a security
threat.
"The deal is unlikely to have problems in Congress," Sen. Charles
Schumer, a leading member of the Democratic-controlled Congress, said.
Officials said DEA has been briefing administration officials and senior
members of Congress of plans to purchase the two U.S. firms. They said DEA
has been told that any purchase would be subject to security restrictions
and periodic review.
In 2006, Schumer led an effort to block the UAE purchase of a British
firm that managed the six leading ports in the United States. The effort by
the UAE's Dubai Ports World was opposed by most of Congress on grounds of
national security.
"This [DEA] purchase is not as much of a security risk as Dubai Ports
World," Schumer said.
DEA, a $15 billion aerospace conglomerate, has been negotiating with the
Washington-based Carlyle Group for the acquisition of Landmark and Standard
Aero. Executives said the deal could be worth close to $2 billion.
Landmark owns 33 business aircraft terminals in Canada and the United
States. Standard Aero has only repair facilities. Landmark maintains
contracts with the U.S. Air Force and its employees undergo security checks.
Officials said the proposed DEA purchase would be reviewed by the
Committee on Foreign Investment in the United States. The committee, headed
by Treasury Secretary Henry Paulson, was meant to ensure that the sale of
any U.S. company would not harm national security.
"The CFIUS process should be allowed to run its proper course,'' Sen.
Joseph Lieberman, a Connecticut independent, said.