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South China Morning Post
11 hours ago
- Business
- South China Morning Post
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.
South China Morning Post
17-04-2025
- Business
- South China Morning Post
How Hutchison deal could make shipper MSC world's dominant port operator
The world's biggest container shipping line, MSC, is also likely to become the largest port operator across the globe if it succeeds in taking control of 41 facilities from Hong Kong's CK Hutchison Holdings, further reducing the number of firms running terminals, industry experts have said. Advertisement Geneva-based MSC, which is the first container carrier to operate 900 ships, will strengthen its marine dominance by the takeover across 23 countries of 43 ports, including two at the Panama Canal, through its Terminal Investment Limited (TiL) arm in partnership with US investment giant BlackRock. The deal, announced earlier this year, will see the BlackRock-led consortium take an 80 per cent stake in CK Hutchison's port assets outside its home base. This massive portfolio includes major hubs in Europe, Asia and the Americas. MSC's earnings, however, were expected to be lower this year as US President Donald Trump's tariffs and ship fee proposals would slash the volume of American shipping lanes by a quarter, analysts said. 'If the deal goes ahead, this will effectively make MSC the world's largest terminal operating company,' Lars Jensen, founder and chief executive of container shipping consultancy Vespucci Maritime, said on Thursday. Advertisement 'From a strategic perspective, this will give them a much better opportunity to optimise synergies between their terminal operations and their liner shipping operations, in the process also enhancing the competitive positioning of their liner shipping business globally.'
Express Tribune
05-03-2025
- Business
- Express Tribune
Hong Kong billionaire agrees to sell Panama Canal ports to US firm
Listen to article CK Hutchison Holdings, a Hong Kong-based company founded by billionaire Li Ka-shing, has agreed to sell its majority stake in two key Panama Canal ports to a US-led investment group. The deal, valued at $22.8 billion, includes 43 ports in 23 countries, with the Panama Canal terminals among the most prominent assets. The sale comes after months of concerns raised by US President Donald Trump, who has criticised Chinese control over the canal and argued that the US should regain control of the strategic waterway. Although CK Hutchison is not owned by the Chinese government, its base in Hong Kong means the company operates under Chinese financial laws. The company has managed the Panama Canal ports since 1997. The deal, which requires approval from the Panamanian government, also includes Terminal Investment Limited, a Swiss company. The Panama Canal, a 51-mile (82 km) waterway linking the Atlantic and Pacific Oceans, handles over 14,000 ships annually, including military vessels, container ships, and those carrying natural gas. Despite US concerns, Panama has rejected the idea that the canal is under Chinese control. Panama's government insists that the canal will remain in its hands, with President Jose Raul Mulino reiterating that the waterway "is and will remain" fully under Panama's control. Frank Sixt, co-managing director of CK Hutchison, stressed that the sale is a purely commercial transaction and not influenced by the political issues surrounding the canal.
