Beijing cautions Hong Kong's CK Hutchison to ‘act with prudence' over port deal
The Chinese Ministry of Commerce has cautioned Hong Kong's CK Hutchison Holdings to maintain 'a clear understanding' of the situation and 'act with prudence' after Li Ka-shing's conglomerate pledged earlier this week that its Panama port sale would not violate any laws.
A ministry spokeswoman made the remarks on Thursday after the conglomerate issued a statement on Monday in response to mounting concerns over the sale of its 43 overseas ports to a BlackRock-led consortium in a deal valued at US$23 billion.
'Since March, relevant departments have issued multiple statements stressing that the [company's] port sale will be reviewed according to the law to protect fair market competition in the market and safeguard public interests,' ministry spokeswoman He Yongqian said.
'Parties involved in the transaction should not take any actions evading the reviews. No concentration of undertakings can be implemented without approval; otherwise legal liability will be incurred.
'It is hoped that the relevant enterprise will maintain a clear understanding of the situation and act with prudence.'
Under Article 20 of mainland China's Anti-Monopoly Law, 'concentration' refers to the merger of business operators, securing control over another by acquiring its equity or assets or an operator acquiring control or influence over others with a contract or through other means.
Beijing has signalled its anger over the proposed sale of the ports, especially the two that CK Hutchison operates at either end of the Panama Canal. Its offices overseeing Hong Kong affairs have reposted scathing newspaper commentaries urging the company to think twice about which side it wanted to stand with amid Sino-US tensions. One op-ed piece called the deal a 'betrayal of all Chinese people'.
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