In its US$6.8 billion (AU$9.08 billion) acquisition of P&O, Dubai Ports World, a company controlled by the government of the United Arab Emirates, would take over the operation of six major US ports that include facilities in New York and Miami.
It’s a move which has US lawmakers up in arms arguing that it would be reckless to hand over control of strategic ports to an Arab-based company in light of the September 11, 2001 attacks.
But the London High Court on Thursday cleared the takeover, rejecting the objections of the Eller Company, a Florida-based firm that argued the takeover would flout a joint venture it has with P&O.
“The arguments developed by Eller do not convince me I should not sanction the scheme of arrangement", Judge Nicholas Warren said of an agreement necessary for the takeover to go ahead.
New review
However, because of the controversy, Dubai Ports World (DP World) has agreed to a second 45 day review of the deal by US authorities despite already receiving US government approval for it to proceed.
P&O said in a statement that the takeover would now likely be completed by Friday afternoon (1500GMT).
Earlier in the week, US opponents to the deal conceded they were powerless to prevent the sale being pushed through but had placed hopes in an 11th-hour intervention by US President George W. Bush.
Critics, particularly Democrats, believe that DP World, despite safeguards, will have access to crucial safety information.
But the Bush administration insists the US Coast Guard and Customs Service will still be in charge of security even if DP World takes over management of the terminals.
Appeal ahead
The acquisition creates the second biggest global ports and container group in terms of traffic, on a par with Singapore's state-linked PSA International and the Danish group APM Terminals.
A spokesman for Eller said the company was "very disappointed" by the ruling and argued the deal would could cost it 150 million dollars and affect the job status of 1,500 workers at the Miami port.
"We intend to seek leave to appeal and if successful expect an appeal to be heard in the very near future," the spokesman said.