CK Hutchison has confirmed plans to bring a “major strategic investor” from mainland China into its $23bn global ports sale, a move widely interpreted as an attempt to win Beijing’s approval after months of political resistance. According to the Financial Times, the Chinese state-owned shipping group Cosco is now in advanced talks to join the MSC- and BlackRock-backed consortium, though its role may be limited to avoid further geopolitical tensions.
As reported by Trans.INFO earlier this month, Cosco had pushed for veto rights in the deal, and Chinese regulators launched a review shortly after the sale was announced.
According to the Financial Times, Chinese regulators had expressed frustration over the deal, arguing that it would give Western companies effective control over a strategically important global port network. The proposed inclusion of Cosco is seen as a response to these objections and could help the deal pass Beijing’s antitrust review.
The Financial Times also noted that representatives of MSC and BlackRock met with Chinese regulators in June to discuss approval.
Political pressure has grown since the deal was announced in March. As previously reported, Chinese state media criticised tycoon Li Ka-shing and his family, while state-owned firms were instructed to avoid new partnerships with businesses linked to the Li family. Bloomberg has also reported that negotiations by Li’s younger son, Richard Li, to expand his insurance ventures in mainland China were suspended in the wake of the deal.
The inclusion of Cosco, even in a limited capacity, may help to unblock the transaction without triggering further backlash from Western governments. The two Panama Canal ports have been particularly sensitive after U.S. President Donald Trump claimed in January that China was “operating the Panama Canal” and vowed to “take it back”.
Following the latest filing, CK Hutchison shares rose 1%, while Cosco shares fell 2.5%. According to the Financial Times, CK Hutchison shares have gained 9% over the past week amid renewed optimism that the sale can now proceed.
The company has acknowledged that adjustments to the consortium structure will be required and said it intends to allow the necessary time for negotiations to reach a revised agreement acceptable to all authorities.
