In what is the largest-ever hostile takeover of an American company by a German corporation, New Jersey-based Engelhard Corp. announced it was abandoning resistance and would succumb “to the inevitable” and accept the German-owned corporation basf’s offer (Financial Times Information, May 31).

According to the Wall Street Journal, “[t]he deal is the biggest for basf, the world’s largest chemicals maker by sales” and is valued at $5.6 billion (May 31).

Engelhard Corp. was founded by Charles W. Engelhard, an “infamous gold dealer” who, according to tradition, was the inspiration behind the James Bond villain Goldfinger. Today the Fortune 500 company employs 7,000 people worldwide and is best known for inventing the catalytic converter used in cars, trucks and factories, as well as for its precious metals bars, which are traded worldwide. Engelhard is also a world-leading surface and materials science company that provides technologies for environmental, process, appearance and performance applications and even in the production of medications.

Engelhard company spokesman Ted Lowen, after the buyout was accepted by company management, said the directors took into consideration the opinions of its shareholders. Unfortunately, those shareholders are not getting quite the deal they think they are. Though Engelhard held out after basf’s original offer of us$37 at the start of the year, the offer it accepted—$39 per share—is worth less because over that same time period the value of the American dollar fell approximately 7 percent against the euro. In euro terms, basf is actually paying less than its original offer at the start of the year.

The Engelhard takeover is a symptom of the problem facing America.

Because of America’s massive and growing debts and trade deficits, the dollar is coming under pressure. As the value of the U.S. greenback erodes, American assets become worth less in dollar terms and more vulnerable to foreign takeovers. Additionally, foreign nations like China, Japan and Germany hold piles of U.S. debt. If trends persist and the dollar keeps eroding, pressures upon foreign nations to spend those devaluating dollars will increase—and American companies will continue to be the target of choice. As more companies are bought out, America’s control over its strategic industries is bought out too.