Latest news with #MSC
Business Insider
2 days ago
- Business
- Business Insider
BlackRock Stock (BLK) Drops as China Threatens to Scupper $22.8B Panama Ports Deal
Shares in U.S. asset manager BlackRock (BLK) dropped today as the Chinese government threatened to pull the plug on its $22.8 billion Panama Ports deal with CK Hutchison (CKHUF). Elevate Your Investing Strategy: Take advantage of TipRanks Premium at 50% off! Unlock powerful investing tools, advanced data, and expert analyst insights to help you invest with confidence. Make smarter investment decisions with TipRanks' Smart Investor Picks, delivered to your inbox every week. According to the Wall Street Journal, China wants state-owned shipping giant Cosco to be an equal partner and shareholder in the ports alongside BlackRock and Mediterranean Shipping Company (MSC). The proposed sale includes two ports at either end of the Panama Canal and more than 40 others around the world. Floodgates are Open BlackRock and MSC, which reached a preliminary agreement to buy the ports from Hong Kong conglomerate CK back in March, are reportedly open to Cosco taking a stake. However, it is understood that a deal with Cosco will not be reached before the agreed-upon July 27 deadline for exclusive talks between BlackRock, MSC and CK. 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. This won't be too much of a surprise for BlackRock given that legal and regulatory hurdles are a key risk for the group. Chinese Doubts Bringing Cosco into the fold would not sit well with President Trump who has put a lot of political capital into ensuring that U.S. dominance over the Panama Canal is reasserted. There is also the current trade and tariff spat between the two nations, as well as wider geopolitical concerns. The Chinese government has also repeatedly expressed concerns about the deal since March. This has included slamming CK for betraying the Chinese people and being 'spineless.' It was concerned, and presumably still is, that the deal could hit China's shipping and trade interests. Its view will carry a lot of weight with the parties involved in the deal. That's because BlackRock and Hutchison have business interests in China, and MSC is one of the biggest movers of Chinese products around the world. Is BLK a Good Stock to Buy Now? On TipRanks, BLK has a Strong Buy consensus based on 13 Buy and 1 Hold ratings. Its highest price target is $1,224. BLK stock's consensus price target is $1,168.79, implying an 8% upside.
Business Times
2 days ago
- Business
- Business Times
China threatens to block Panama ports deal unless its shipping giant gets stake: report
[BENGALURU] China is threatening to block the sale of more than 40 ports, owned by Hong Kong-based CK Hutchison, to BlackRock and Mediterranean Shipping Company (MSC) if the Chinese shipping company Cosco does not get a stake, The Wall Street Journal (WSJ) reported on Thursday (Jul 16), citing unnamed sources. BlackRock declined to comment on the report when contacted by Reuters. CK Hutchison, MSC and Cosco did not immediately respond to Reuters requests, while the Chinese government could not be immediately reached outside office hours. 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. Tycoon Li Ka-shing's CK Hutchison in March announced it would sell its 80 per cent holding in the ports business, which encompasses 43 ports in 23 countries. The business has an enterprise value of US$22.8 billion, including debt. After much scrutiny and criticism in China, Hong Kong conglomerate 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, WSJ said. However, the parties would likely not reach a deal before a previously agreed upon Jul 27 deadline for exclusive talks between BlackRock, MSC and Hutchison, the report added. The proposed sale has also drawn the attention of US 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. REUTERS
Straits Times
2 days ago
- Business
- Straits Times
China threatens to block Panama ports deal unless its shipping giant gets stake, WSJ reports
Find out what's new on ST website and app. 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. Bengaluru - China is threatening to block the sale of more than 40 ports, owned by Hong Kong-based CK Hutchison, to BlackRock and Mediterranean Shipping Company (MSC) if Chinese shipping company Cosco does not get a stake, the Wall Street Journal reported on July 17, citing unnamed sources. BlackRock declined to comment on the report, when contacted by Reuters. CK Hutchison, MSC and Cosco did not immediately respond to Reuters requests, while the Chinese government could not be immediately reached outside office hours. 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. Tycoon Li Ka-shing's CK Hutchison in March announced it would sell its 80 per cent holding in the ports business, which encompasses 43 ports in 23 countries. The business has an enterprise value of US$22.8 billion (S$29.3 billion), including debt. After much scrutiny and criticism in China, Hong Kong conglomerate 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 all are open to Cosco taking a stake, WSJ said. However, the parties would likely not reach a deal before a previously agreed upon July 27 deadline for exclusive talks between BlackRock, MSC and Hutchison, the report added. Top stories Swipe. Select. Stay informed. World Trump diagnosed with vein condition causing leg swelling, White House says World Trump was diagnosed with chronic venous insufficiency. What is it? Singapore Driverless bus in Sentosa gets green light to run without safety officer in first for S'pore Asia Malaysia's King appoints Wan Ahmad Farid as new Chief Justice Singapore SPCA appoints Walter Leong as new executive director World US strikes destroyed only one of three Iranian nuclear sites, says new report Opinion Is your child getting drawn to drugs? Don't look away and don't give up Business Granddaughter of late Indonesian tycoon pays $25 million for Singapore bungalow The proposed sale has also drawn the attention of US 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. REUTERS
Yahoo
3 days ago
- Business
- Yahoo
China could block sale of port terminals: Report
The sale of global port facilities to U.S.-based investor BlackRock and Mediterranean Shipping Company by Hong Kong's CK Hutchison could be blocked by China, unless shipping company Cosco is included, according to a Wall Street Journal report citing anonymous sources. Hutchison said in March it planned to sell its 80% share of port terminals through subsidiary Hutchison Port Holdings at 43 ports in 23 countries for $22.8 billion. The company is controlled by billionaire Li Ka-shing. The prospective sale would include terminals near the Panama Canal, the waterway President Donald Trump said is a strategic priority for the United States. Based in Geneva, MSC is the world's largest container shipping line, with more than 800 ships and capacity of 5.6 million twenty foot equivalent units (TEUs). The newspaper reported that BlackRock, MSC and Hutchison are amenable to a Cosco stake. Hutchison, BlackRock, and MSC did not immediately respond to requests for comment. Messages left for the White House and Chinese media office were not immediately returned. The report added an agreement is not expected before a July 27 deadline for exclusive talks among BlackRock, MSC and Hutchison, the report added. Find more articles by Stuart Chirls uncertainty, sliding Asia-US container rates are a sure thing Report: White House maritime chief leaving Ports back bill to limit Customs charging for inspection services FMC investigating Port Houston pacts with container carriers The post China could block sale of port terminals: Report appeared first on FreightWaves.
New York Post
3 days ago
- Business
- New York Post
China threatens to squash Panama ports deal unless its shipping giant gets an equal stake: report
China has threatened to block a deal for dozens of global ports – including two near the Panama canal – if its own shipping giant doesn't get a sizable stake, according to a report Thursday. The deal, valued at around $20 billion, hands over more than 40 global ports owned by Hong Kong business magnate Li Ka-Shing to US asset manager BlackRock and Mediterranean Shipping Company. China is demanding that Cosco, its largest shipping firm, be an equal partner to BlackRock and MSC in the deal, sources familiar with the matter told the Wall Street Journal. A Cosco Shipping container freighter in the Port of Hamburg. BlackRock, MSC and Li's firm, CK Hutchison, are all open to that idea, sources said. MSC, Cosco and the Chinese Embassy did not immediately respond to The Post's requests for comment. BlackRock declined to comment. The firms are currently staring down a July 27 deadline, when exclusive talks between the three partners will end and Cosco can be added to the deal. But that change will likely anger President Trump, who has viewed the deal as a national security win as he argues that the US needs to 'take back' the waterway. Chinese officials, meanwhile, have told Chinese state-owned companies to freeze any incoming deals with Hutchison or other businesses linked to Li, sources told the Journal. The inclusion of Cosco emerged as a way to nudge the deal forward following intense US-China trade talks in Switzerland, Bloomberg reported last month. A view of the Panama City skyline and Balboa port. Nicola78/Wirestock Creators – Chinese authorities have told BlackRock, MSC and Hutchison that without Cosco's inclusion in the deal, Beijing will take steps to block the sale, sources said. And the firms involved in the deal can't afford to burn bridges with China. BlackRock and Hutchison both have interests in the nation, and MSC is one of the largest shippers of Chinese exports in the world. Italian billionaire Gianluigi Aponte's family-run business, MSC, has emerged as the lead investor in the deal, though BlackRock is notably expected to take over the two key Panama ports included in the sale. The deal is expected to position MSC as the world's largest terminal operator. It wouldn't be the first time China has squashed such a deal. In 2014, it blocked a major shipping alliance between MSC, Denmark's AP Moeller-Maersk and France's CMA CGM.
