The New York-New Jersey Port Authority and American International Group said they had reached a preliminary agreement to let the insurer buy Dubai Ports World's stake in the Port Newark container terminal.
The high-profile deal, which aims to ease security concerns raised last year by the prospect of a company owned by the UAE controlling US port assets, almost broke down.
DP World and AIG said the interstate agency demanded an estimated $83 million (BD31m) fee to approve the lease transfer as well as detailed data about the AIG affiliate that is the buyer.
The agency said it should be repaid for its capital investments in the Newark port, arguing that Dubai was making an 'extraordinary' profit on its investment.
New York Sen Charles Schumer and New Jersey Sen Robert Menendez, both Democrats, on Thursday threatened to block the Port Authority's federal funding if the agency stuck to its demands.
The agreement in principle, which must be formally approved by the agency's board, obliges the AIG firm, called Ports America, to invest a minimum of $50m in the port over the life of its investment.
This period is 23 years, said a source close to the deal.
The AIG-Port Authority statement also said the agency had 'concluded the materials and information it received regarding Ports America and its ownership have confirmed that it will be a suitable terminal operator and partner committed to making investments that are critical to the continued strength and viability of the Port of New York and New Jersey.'
AIG spokesman Chris Winans said "We are extremely pleased that we could work with the Port Authority and DP World to reach a beneficial outcome in the acquisition of the Port Newark Container Terminal."
The high-profile deal, which aims to ease security concerns raised last year by the prospect of a company owned by the UAE controlling US port assets, almost broke down.
DP World and AIG said the interstate agency demanded an estimated $83 million (BD31m) fee to approve the lease transfer as well as detailed data about the AIG affiliate that is the buyer.
The agency said it should be repaid for its capital investments in the Newark port, arguing that Dubai was making an 'extraordinary' profit on its investment.
New York Sen Charles Schumer and New Jersey Sen Robert Menendez, both Democrats, on Thursday threatened to block the Port Authority's federal funding if the agency stuck to its demands.
The agreement in principle, which must be formally approved by the agency's board, obliges the AIG firm, called Ports America, to invest a minimum of $50m in the port over the life of its investment.
This period is 23 years, said a source close to the deal.
The AIG-Port Authority statement also said the agency had 'concluded the materials and information it received regarding Ports America and its ownership have confirmed that it will be a suitable terminal operator and partner committed to making investments that are critical to the continued strength and viability of the Port of New York and New Jersey.'
AIG spokesman Chris Winans said "We are extremely pleased that we could work with the Port Authority and DP World to reach a beneficial outcome in the acquisition of the Port Newark Container Terminal."
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