Friday, 10 May 2024

Mubadala Capital's $3 bln Fortress bid clears key US regulatory hurdle, FT reports | Reuters

Mubadala Capital's $3 bln Fortress bid clears key US regulatory hurdle, FT reports | Reuters

Abu Dhabi sovereign investor Mubadala Capital's $3 billion bid for New York-based Fortress Investment Group has cleared, opens new tab a significant U.S. regulatory hurdle after the parties agreed to important concessions, the Financial Times reported on Friday.

The Committee on Foreign Investment in the United States (CFIUS) approved Fortress' sale of a majority equity interest to Mubadala, the newspaper said, citing three people familiar with the matter.

The approval comes as Mubadala agreed to let Fortress commit to keeping technology and data in the U.S after it earlier pledged to waive day to day control over the investment group, the report said, adding that the concession comes amid Washington's increased focus on protecting US intellectual property.

CFIUS and Mubadala did not immediately respond to a Reuters request for comment, while Fortress declined to comment on the report.

Abu Dhabi's Mubadala in May 2023, said it would buy a majority stake in Fortress Investment from SoftBank Group Corp (9984.T), opens new tab.

After the deal is completed, Fortress' management will own a 30% stake, with Mubadala holding the rest.

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