A US investigation has halted the sale of Inchcape Shipping Services (ISS), the first Dubai World business put up for sale since the emirate’s debt crisis began.
The Department of Justice is probing the contracts of the port and shipping agent’s “government services” arm. The two remaining private-equity bidders for the business, Cinven and CVC, were told earlier this week the sale had been halted. A source said the entire auction was now likely to be called off.
The collapse of the sale, which at one point had been expected to raise as much as $800m (£540m), is a blow to Dubai World, which is in the midst of restructuring and owes banks $14.4bn.
The unit provides services to army bases and on battlefields, and helps with military supply chains.
City A.M. Reporter