Latest news with #CKHutchison
Canada News.Net
an hour ago
- Business
- Canada News.Net
CK Hutchison revises ports deal plan amid Beijing scrutiny
HONG KONG: CK Hutchison is exploring the inclusion of a major Chinese investor in the proposed US$22.8 billion sale of its global ports business, following regulatory scrutiny from Beijing that has complicated progress on the deal. The move comes after the Hong Kong-based conglomerate concluded exclusive talks with a consortium led by U.S. investment giant BlackRock and Italy's MSC, the shipping group controlled by billionaire Gianluigi Aponte. The initial agreement, reached in March, covered 43 port assets across 23 countries, including two key terminals located along the Panama Canal, a region of strategic interest to both China and the United States. With the exclusivity window closed, CK Hutchison said changes in both the consortium's structure and the transaction itself are now likely to be required to secure the necessary regulatory approvals. The company emphasized it would not proceed without clearance from all relevant authorities and said it is open to taking additional time to ensure compliance. In a filing to the Hong Kong Stock Exchange on July 28, the company confirmed it is in discussions with the existing consortium to bring in a "major strategic" Chinese investor. A source familiar with the matter told Reuters that China COSCO Shipping Corp, one of the country's largest port operators, is in talks to join the group. While BlackRock declined to comment, neither MSC nor COSCO responded to requests for comment. CK Hutchison also refused to provide further details beyond its official exchange filing. The development comes amid increased geopolitical friction, particularly following remarks by U.S. President Donald Trump, who previously called for U.S. control of the Panama Canal and praised the port sale as a symbolic "reclaiming" of the region. His administration had also raised concerns over Chinese control of port assets near the canal. China's State Administration for Market Regulation has announced it will review the deal under antitrust laws to ensure market fairness and protect the public interest. While the regulator did not provide additional comments, state-run Chinese media criticized the proposed transaction, warning that it undermines national interests. In its latest statement, CK Hutchison said that any new investor joining the consortium must be a significant participant in the group. Analysts remain cautious about how the situation will evolve. David Blennerhassett, strategist at Ballingal Investment Advisors, noted that the majority Chinese control of the consortium would likely face resistance. However, a minority stake may ease geopolitical tensions while maintaining deal viability. JPMorgan analysts echoed that view, stating in a client note that adding COSCO could address some of Beijing's concerns and improve the chances of approval. They also flagged that some port assets—especially those in Panama—may be excluded from the final agreement, which could affect both the structure and pricing of the revised deal. CK Hutchison's shares rose 1.6 percent on July 28, outperforming the broader Hang Seng Index, which gained 0.9 percent.
Nikkei Asia
4 hours ago
- Business
- Nikkei Asia
Panama comptroller sues to nullify CK Hutchison port rights
An aerial view shows Cristobal Port, operated by Panama Ports Company under the CK Hutchison group, in February. © Reuters JAMES HAND-CUKIERMAN TOKYO -- Panama's comptroller general is suing to void Hong Kong conglomerate CK Hutchison's control of ports at both ends of the Panama Canal, potentially complicating an already fraught effort to finalize a sale of the facilities. Anel Flores said he has filed two suits with the Latin American country's Supreme Court because, in his opinion, the renewal of the concession in 2021 was "unlawful." Panamanian authorities have been auditing the arrangement, and Flores has alleged that there were many "irregularities," without giving details.
Business Times
7 hours ago
- Business
- Business Times
Panama official seeks court review of CK Hutchison port contract
[NEW YORK] Panama's comptroller general asked its Supreme Court to review the government's contract extension with CK Hutchison's local ports unit, potentially throwing a new wrench into the conglomerate's deal to sell its global terminals business. Panamanian official Anel Flores said that he asked the court to find unconstitutional a 2021 extension for Panama Ports' contract to operate two ports along the Panama Canal and declare it null and void. 'The contract was bad, one-sided and abusive, against the interests of the country,' he told a briefing in Panama City. Panama Ports did not immediately respond to a request for comment. The Panama terminals are at the centre of the geopolitically delicate deal for the 43 ports owned by Hong Kong tycoon Li Ka-shing's CK Hutchison. A buyer consortium backed by BlackRock is seeking to acquire the business, with the American asset manager taking control of Panama Ports. While the deal has been smiled upon by US President Donald Trump, who has sought to reduce foreign interests in the strategically important waterway, it's met with opposition in Beijing, which considers BlackRock a proxy for American influence. China has also separately cautioned that antitrust reviews shouldn't be bypassed, so as to prevent an agreement from being rushed into. BT in your inbox Start and end each day with the latest news stories and analyses delivered straight to your inbox. Sign Up Sign Up 'What is Panama's business is that the ports are ours, they belong to the republic of Panama,' Flores said. 'I don't think it's right that, at other latitudes, other people are negotiating the future using property that belongs to Panama.' The transaction has remained pending while the parties involved seek to resolve the issues. CK Hutchison said this week that it may invite an unnamed 'major strategic investor' from China to join the consortium, a move that's likely to help remove obstacles that have been holding up the completion of a deal. The Chinese investor would join as a significant member of the group, CK Hutchison said, hours after the expiry of a 145-day exclusive talks window with the consortium. State-owned China Cosco Shipping has been negotiating a powerful role for itself as a condition to join the group, Bloomberg News reported. CK Hutchison this week reiterated that it 'will not proceed with any transaction that does not have the approval of all relevant authorities'. Flores said in April that an audit by his office found that Panama Ports had failed to get proper approvals for its contract extension. Tax breaks under the contract have also cost the Central American nation US$1.3 billion, as a series of tax-exempt shell companies operating on Panama Ports's grounds helped the firm lower the share of profits it paid the government, he told a press conference at the time. BLOOMBER
Bloomberg
9 hours ago
- Business
- Bloomberg
Panama Official Seeks Court Review of Hutchison Ports Contract
Panama's comptroller general asked the Supreme Court to review the government's contract extension with a unit of CK Hutchison Holdings Ltd., potentially throwing a new wrench in the company's deal to sell the business. Anel Flores, the Panamanian official, said he asked the court to find the contract extension unconstitutional and declare it null and void. 'The contract was bad, one-sided and abusive, against the interests of the country,' he said. Panama is the true owner of the ports, he said.
Yahoo
9 hours ago
- Business
- Yahoo
Panama auditor files suit to scrap CK Hutchison-controlled port contract
PANAMA CITY (Reuters) -Panama's comptroller general, Anel Flores, said on Wednesday he had filed suit to the nation's Supreme Court against a contract to operate ports near the Panama Canal, held by a local firm controlled by Hong Kong-based CK Hutchison. Flores said the two suits were to declare the unconstitutionality and to nullify the contract to operate the Balboa and Cristobal ports. The Supreme Court would still need to accept the request to hear the comptroller's complaint. The suits stem from a months-long audit spearheaded by Flores, who has publicly complained that the contract did not serve the nation's interests. Flores has not made the full audit public, but said on Wednesday that it had revealed "many irregularities." The complaint could throw a wrench in a planned deal for a consortium involving Italian billionaire Gianluigi Aponte's family-run shipping company MSC and U.S. investment firm BlackRock to buy out most of CK Hutchison's global port business, including the two ports. CK Hutchison holds a 90% stake in the local Panama Ports Company, which had a 25-year concession to operate the ports renewed in 2021. The sale has faced pressure from both Washington and Beijing, with Reuters reporting that Chinese state-run shipping giant COSCO could also be brought into the deal. "They are talking about billion-dollar deals here, which do not include Panama, the true owner of the Panamanian ports," Flores said. "That is why we have taken the actions we are taking, because we are not satisfied." Sign in to access your portfolio
