Latest news with #CKHutchison
Mint
11 hours ago
- Business
- Mint
China's Cosco Eyes Veto Rights in Deal for Li Ka-shing's Ports
China's biggest shipping company is set to join the global consortium that's acquiring Hong Kong tycoon Li Ka-shing's overseas ports, and is requesting a powerful role in the group in order to secure Beijing's blessing for the controversial deal, people familiar with the matter said. State-owned China Cosco Shipping Corp. is asking to have veto rights or equivalent powers in the entity taking over the 43 ports, including two strategically important ones along the Panama Canal, the people said, asking not to be identified discussing private matters. Cosco has argued such rights are necessary to block any decisions that are potentially harmful to China's interests, the people added. Li's CK Hutchison Holdings Ltd. and the original buyer group, which includes BlackRock Inc.'s Global Infrastructure Partners unit and Italian billionaire Gianluigi Aponte's Terminal Investment Ltd., have agreed that Cosco should have full informational access to the operation, the people said. But talks are still ongoing as to the powers that Cosco will have in the consortium and no final decisions have been made, they said. Read: Chinese Firms in Talks to Join Group for Li Ka-Shing's Ports A 145-day period for exclusive talks between CK Hutchison and the consortium is likely to lapse on July 27, and details of Cosco's role in the consortium could be settled by the end of September, some of them said. Cosco didn't respond to calls and a faxed request for comments. CK Hutchison and the Aponte family's MSC Mediterranean Shipping Co., which controls Terminal Investment, didn't respond to separate requests for comment. BlackRock declined to comment. Cosco's demands mark the latest twist for a deal that's become a proxy for US-China rivalry, after President Donald Trump painted the transaction as the return of Panama Canal to US influence. Chinese regulators have, for their part, vowed to investigate the transaction, and Li and his family have come under intense scrutiny and criticism. The Hong Kong tycoon's younger son Richard Li's talks to expand his insurance business into mainland China have stalled after the ports deal upset Beijing, Bloomberg reported earlier this month. That followed another Bloomberg report in March that China told its state-owned firms to hold off on any new collaboration with businesses linked to the Li family. The original structure of the buyer consortium was designed to give the Aponte family-controlled Terminal Investment ownership of all the ports except the two in Panama, whose control will go to the BlackRock unit. With assistance from Silla Brush. This article was generated from an automated news agency feed without modifications to text.
Wall Street Journal
a day ago
- Business
- Wall Street Journal
How China Set About Amassing European Shipping Ports
When Hong Kong-based CK Hutchison set plans to sell more than 40 ports in multiple nations to an American-led investment group, two facilities in Panama got most of the attention. But the real action is in Europe, where Chinese entities such as government-run Cosco have spent decades accumulating holdings. 🔎 Read more:
Reuters
3 days ago
- Business
- Reuters
China threatens to block Panama ports deal unless its shipping giant gets stake, WSJ reports
July 18 (Reuters) - China is threatening to block the sale of more than 40 ports, owned by Hong Kong-based CK Hutchison ( opens new tab, to BlackRock (BLK.N), opens new tab and Mediterranean Shipping Company (MSC) if Chinese shipping company Cosco does not get a stake, the Wall Street Journal reported on Thursday, citing unidentified sources. BlackRock declined to comment on the report when contacted by Reuters. CK Hutchison, MSC and Cosco did not immediately respond to requests for comment. Chinese officials have told BlackRock, MSC and Hutchison that if Cosco is left out of the deal, Beijing would take steps to block Hutchison's proposed sale of the ports, the newspaper said. China has always been firmly opposed to the "use of economic coercion, hegemony, bullying, and infringement of the legitimate rights and interests of other countries," its foreign ministry spokesperson Lin Jian said at a press briefing on Friday, when asked about the report. Tycoon Li Ka-shing's CK Hutchison in March announced it would sell its 80% holding in the ports business, which encompasses 43 ports in 23 countries. The business has an enterprise value of $22.8 billion, including debt. After much scrutiny and criticism in China, CK Hutchison confirmed in May that Italian billionaire Gianluigi Aponte's family-run MSC, one of the world's top container shipping groups, was the main investor in a group seeking to buy the ports. BlackRock, MSC and Hutchison are all open to Cosco taking a stake, the WSJ said. However, the parties would likely not reach a deal before a previously agreed July 27 deadline for exclusive talks between BlackRock, MSC and Hutchison, the report added. The proposed sale has also drawn the attention of U.S. President Donald Trump, who has repeatedly expressed his desire to reduce Chinese influence around the Panama Canal and termed the deal a "reclaiming" of the waterway after it was first announced. Reuters could not immediately verify the WSJ report.
Wall Street Journal
3 days ago
- Business
- Wall Street Journal
How China Built a Global Port Network
When a Hong Kong conglomerate set plans this year to sell its global network of shipping ports to an American-led investment group, two facilities in Panama got most of the attention. But the real action is in Europe, where Chinese business interests have spent decades accumulating port holdings. Hong Kong-based CK Hutchison agreed in March to sell more than 40 ports in 23 nations to an investor group led by American financial firm BlackRock, and the parties had aimed to reach a definitive agreement on the $23 billion deal at month-end. Now, Beijing is trying to muscle into the deal and carve out a stake for its giant shipping group Cosco, The Wall Street Journal reported Thursday.
Newsweek
4 days ago
- Business
- Newsweek
China Threatens Trump's Panama Canal Deal: Report
Based on facts, either observed and verified firsthand by the reporter, or reported and verified from knowledgeable sources. Newsweek AI is in beta. Translations may contain inaccuracies—please refer to the original content. China has warned that it may block the sale of Hong Kong-based CK Hutchison's international ports, including one on either end of the Panama Canal, to a United States-linked consortium unless China's state-owned shipping giant, COSCO, is included in the agreement. The development has raised questions about the high-profile $22.8 billion deal, which U.S. President Donald Trump lauded as a foreign policy victory that would reduce Chinese influence over strategic global shipping lanes. Why It Matters CK Hutchison agreed in March to sell its 80 percent stake in 43 container ports across 23 countries to a consortium led by BlackRock and the Geneva-based Mediterranean Shipping Company. The deal, which still requires approval from Beijing, comes after Trump claimed, without offering evidence, that China controls the Panama Canal. China and Panama have rejected this, stressing that the canal remains under Panamanian management. Newsweek reached out to BlackRock and CK Hutchison via email for comment. Container ship COSCO Development is seen at the Agua Clara Locks in Colon, 56 miles from Panama City, on May 2, 2017. Container ship COSCO Development is seen at the Agua Clara Locks in Colon, 56 miles from Panama City, on May 2, 2017. Rodrigo Arangua/AFP via Getty Images What To Know Negotiations over the purchase between BlackRock, Mediterranean Shipping Company (MSC), and CK Hutchison are facing mounting pressure as Chinese officials insist that COSCO, a major state-owned Chinese shipping company, be included in the agreement as an equal partner and shareholder. Otherwise, Beijing is prepared to block the transaction, according to people familiar with the talks cited by The Wall Street Journal. Chinese state media has criticized the deal, labeling it a "hegemonic act" by the United States designed to limit China's national interests under the pretense of trade. Chinese authorities launched an antitrust investigation into the sale and ordered state-owned enterprises to pause any new business dealings linked to CK Hutchison founder Li Ka-shing and his family. Officials in Panama confirmed an audit of Hutchison's concessions was ongoing. What People Are Saying Trade expert Henry Gao, a professor at Singapore Management University, told Newsweek of China's reported ultimatum: "I think it's primarily driven by political and strategic considerations. "It won't sit well with the Trump administration, which has been trying to push China out of Latin America, long seen by the U.S. as its own backyard. That said, if bilateral trade negotiations make good progress, the U.S. might be willing to resolve the issue in a more amicable way." Chinese Foreign Ministry spokesperson Lin Jian told reporters Friday: "Regarding the sale of overseas port assets by Changhe, China's State Administration for Market Regulation has stated that it will conduct a review in accordance with the law to protect fair competition in the market and safeguard the public interest. "I would like to stress once again that China has always firmly opposed the use of economic coercion, hegemony and bullying to infringe upon the legitimate rights and interests of other countries." What Happens Next The sources say a final agreement is unlikely before July 27, the previously agreed-upon deadline for negotiations between the three companies.
