Friday, March 07, 2008

Mere coincidence?....

I think not. The puny dollar has made US assets a global bargain, and the world is in a shopping mood. And it's not on Rodeo Drive or 5th Avenue.

For example, our beef-packing industry.
U.S. Premium Beef, LLC (USPB) and National Beef Packing Company, LLC have entered into a Membership Interest Purchase Agreement with JBS S.A. (JBS) under which JBS will acquire all of the outstanding membership interests of National Beef.

Under the terms of the agreement, JBS will pay the members of National Beef total proceeds of approximately $465 million cash and $95 million in JBS common stock. In addition, JBS will assume all of National Beef’s debt and other liabilities at closing.

The sale will combine all of National Beef’s operations and facilities, including National Carriers, Inc. and its ownership in Kansas City Steak Company, LLC with JBS Swift’s beef operations. National Beef President Tim M. Klein will become President and Chief Operating Officer of the joint National Beef/JBS-Swift beef operations. [More]
Our hard-hit finance industry is trolling for foreign buyers as well. Sometimes without much luck.
Mideast sovereign wealth funds may fail to save troubled U.S. banking giant Citigroup Inc. unless more cash is pumped into the lender, the head of a $13 billion Dubai-owned investment firm said Tuesday.
Sameer Al Ansari, Chief Executive of Dubai International Capital told delegates at a private equity conference that it will take more than the combined efforts of the Abu Dhabi Investment Authority, the Kuwait Investment Authority and Saudi investor Prince Alwaleed bin Talal to save the bank.
"It's going to take more than that to rescue Citi," Ansari said. He added that more write downs are expected and that Gulf investors would be required to bolster Citi.
The Abu Dhabi Investment Authority, or ADIA, a sovereign wealth fund owned by the world's fourth-largest oil exporter, last year bought a 4.9% stake in Citigroup. [More]
Meanwhile, and perversely, a decision by the Air Force to buy an air tanker from a company involving (gasp!) Europeans, and who haven't even had a scandal over defense contracts like our own Boeing has stunned investors. This blatant un-American activity is riling up local Congresshumans.

So let's make sure we got this straight. Foreigners can buy our businesses, but can't compete with them.

Kinda explains what's [not] happening in the Doha round, doesn't it?

1 comment:

Anonymous said...

..or....if you can't beat em out.