CK Hutchison Advances $19 Billion Panama Port Deal Amid Political Pressure
CK Hutchison Holdings Ltd. is proceeding with the sale of two key Panama ports to a BlackRock-led consortium, despite growing pressure from Beijing, as stated by Bloomberg. The deal is part of a broader divestment of 41 global terminals and could generate up to $19 billion in cash for the Hong Kong-based conglomerate. The agreement is expected to be signed by April 2, with final due diligence and tax arrangements now underway, according to sources familiar with the matter.
Chinese authorities have voiced concerns about the deal, citing national security and sovereignty risks. Although the ports in question are outside of Greater China, Beijing has reportedly initiated a review of the transaction. State media and officials have warned that the sale may violate Hong Kong law. Despite this, CK Hutchison’s exclusive 145-day negotiation period with the BlackRock consortium leaves limited room for intervention by Chinese state-linked bidders. The buying group also includes Global Infrastructure Partners and Terminal Investment Ltd., with backing from Singapore-linked investors. The deal is seen as a potential flashpoint amid rising US-China tensions, especially with Goldman Sachs acting as the financial adviser on the transaction.