The Hong Kong-based group confirmed last week that closing the deal this year was no longer possible. Co-managing director Frank Sixt told analysts that “with a deal of this size and complexity, closing would not in any case occur this year even if binding [new] arrangements are agreed this year.” He maintained, however, that there remained a “reasonable chance” of reaching an agreement acceptable to all parties.
As previously reported by Trans.INFO, Chinese regulators condemned the sale shortly after its announcement in March, arguing it posed a threat to China’s national interests. Although no mainland assets were involved, the authorities ordered a merger review, while state-owned companies were instructed to avoid new partnerships linked to the Li family.
The original exclusivity period for negotiations with BlackRock and Mediterranean Shipping Company (MSC) expired on 27 July.
State-owned shipping giant Cosco had entered advanced talks to join the consortium. The company pushed for veto rights and is now seeking a 20–30 per cent stake. Cosco remains the only Chinese conglomerate permitted to participate, giving it considerable bargaining power over BlackRock and MSC, who are expected to require a domestic partner to secure approval.
Panama Canal terminals at centre of political tensions
Under the initial structure, BlackRock was to take control of Hutchison’s two Panama Canal terminals, while MSC would assume majority ownership of 41 other non-Chinese ports across Asia, Europe and the Middle East. As Trans.INFO has previously reported, the inclusion of Panama has been particularly sensitive since US President Donald Trump described the deal in March as “reclaiming the Panama Canal.”
More on the CK Hutchison ports sale from Trans.INFO:
