Hong Kong's CK Hutchison ports sale on thin ice amid US-China tensions: analysts
The US$23 billion sale of global port stakes by Hong Kong's
CK Hutchison could be subject to substantial changes if it is not already on the verge of collapse, with Chinese and Panamanian authorities possibly rejecting the terms, legal and logistics experts have said ahead of the deal's deadline for exclusive negotiation.
Their analysis followed national security and anti-monopoly concerns cited by both countries, with a recent news report suggesting that a state-owned shipping company was now involved in the negotiation to ease Beijing's concerns.
The
deal , which includes the Balboa and Cristobal ports at both ends of the Panama Canal, was caught in the crossfire of geopolitical tensions between the United States and China just weeks before a crucial July 27 exclusive negotiation deadline.
The transaction involves CK Hutchison Holdings selling stakes in 43 ports to a consortium led by Terminal Investment Limited, an affiliate of the world's largest container line MSC, and US asset management giant BlackRock and Global Infrastructure Partners.
'The deal regarding price, due diligence and financing is basically done. What remains are the signoffs from the Panamanian and mainland authorities,' said Surinder Brrar, a professor of practice in global shipping and logistics at Polytechnic University.
He described these approvals as 'big hurdles' that could derail the entire transaction if not surmounted.
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