Hong Kong’s CK Hutchison says its $23 billion ports sale, including two key Panamanian ports, will not close this year as it awaits Beijing’s approval for the transaction with a BlackRock-led consortium.
The deal, announced in March, would transfer 43 non-Chinese ports — including Balboa & Cristobal ports at both ends of the Panama Canal — to U.S. Investment firm BlackRock and Terminal Investment Limited (TIL), a subsidiary of the Swiss-Italian MSC. The ports of Balboa & Cristobal, operated by Hutchison’s Panama Ports Company, are the 2nd and 5th largest Panama Canal ports in container volume (TEU).
Political tensions between the U.S. & China have stalled progress (see earlier article), with Beijing insisting on a merger review and the inclusion of a Chinese partner.
In its interim results released last Thursday, CK Hutchison admitted the sale was taking “much longer than expected,” though it stressed there was still a “reasonable chance” of completion as discussions now involve bringing in a major Chinese investor.
Cosco
As previously reported, China’s State-owned Cosco Shipping is now seeking a 20–30% stake in the deal, which originally gave BlackRock control of the Panama Canal ports and MSC majority ownership of the ports in Southeast Asia, Europe, and the Middle East.
In Panama, lawsuits filed by the Comptroller General challenge the concession agreement with Panama Ports Company, arguing it fails to benefit the state.