The reported sale of CK Hutchison’s global port portfolio to a consortium led by BlackRock and MSC has stalled amid rising geopolitical and legal complexity, according to The Wall Street Journal. The sale includes the ports of Balboa and Cristóbal in Panama.
The transaction, valued at approximately US$22.8 billion and covering more than 40 ports worldwide, is reportedly facing new conditions from China. Beijing is said to be pushing for majority participation and veto rights for Chinese state-owned shipping group COSCO, a demand viewed as unacceptable by the buyers and the U.S. government due to security concerns tied to infrastructure near the Panama Canal.
While Panama Canal authorities continue to affirm there is no Chinese control over the Canal itself, the deal has become part of broader U.S.–China tensions over strategic assets and trade negotiations. Sources cited by the WSJ indicate the talks are now at a difficult impasse.
Local Scrutiny: Constitutional and Annulment Challenges
In parallel, the ports of Balboa and Cristóbal remain under scrutiny locally. Panama’s Supreme Court is expected to rule on constitutional and annulment challenges filed by the Comptroller General against the 1997 concession contract held by Panama Ports Company, a CK Hutchison subsidiary. The Comptroller has publicly stated the contract is detrimental to national interests, citing estimated losses to the State exceeding US$1.3 billion.
With significant legal uncertainty in Panama and growing geopolitical pressure internationally, the future ownership and governance of these strategically located ports remains unresolved.