The Hong Kong-based and Cayman Islands-registered CK Hutchison Holdings has agreed to sell a significant portion of its global port operations outside China and Hong Kong to a joint venture formed by the US-based BlackRock’s Global Infrastructure Partners (GIP) and the Swiss MSC’s Terminal Investment Limited (TiL). The deal, valued at $22.8 billion, includes 43 ports across 23 countries and marks a major shift in the global shipping and logistics sector.
According to CK Hutchison’s official announcement published on 4 March, 2025, the transaction comprises two separate agreements:
- The sale of 90% of Panama Ports Company (PPC), which operates the ports of Balboa and Cristobal in Panama. The deal is subject to approval from the Panamanian government.
- The sale of 80% of Hutchison Port Holdings’ (HPH) international business, covering 43 ports, 199 berths, and associated infrastructure across 23 countries. The agreement excludes Hutchison’s port operations in Hong Kong and China.
CK Hutchison’s Co-Managing Director, Frank Sixt, described the deal as “the result of a rapid, discrete but competitive process in which numerous bids and expressions of interest were received.”
He emphasised that the transaction is “purely commercial in nature and wholly unrelated to recent political news reports concerning the Panama Ports.”
However, he advised investors to “exercise caution in dealing with CK Hutchison shares until the transaction has closed.”
Experts warn of MSC’s growing influence
The acquisition significantly expands MSC’s control over global port operations. Lars Jensen, a leading shipping industry analyst, noted that the deal “could propel MSC to the top, or close to the top, of the largest container terminal operators.”
He added that the acquisition “provides MSC with the possibility to get a much larger level of operational control over many of the key gateway ports and transshipment hubs in their network.”
Similarly, Thomas Cullen of Ti Insight pointed out that MSC’s expansion “could make it one of the most influential players in global shipping,” especially if the acquired terminals are fully integrated into its existing operations.
Diego Aponte, Chairman of TiL and President of MSC Group, welcomed the deal, stating:
“We have a very high regard for the Hutchison Ports management team, and once this transaction closes, we look forward to welcoming them into our larger family.”
Trump has long set his sights on the Panama Canal
The transaction has attracted attention due to the sale of the Panama Ports, which have been the subject of geopolitical discussions. In recent months, U.S. political figures have raised concerns about Chinese influence in the region. Lars Jensen noted that U.S. officials have used the presence of Hutchison Ports in Panama as “a (false) argument that China has some operational control over the Panama Canal.”
Adding to the political dimension, U.S. President Donald Trump referenced the sale in a speech to Congress on March 4, 2025, stating:
“My administration will be reclaiming the Panama Canal, and we’ve already started doing it.”
But let’s not forget that Trump has long had the Panama Canal in his sights: in his 2025 inauguration speech, he claimed:
“China is operating the Panama Canal. And we didn’t give it to China, we gave it to Panama, and we’re taking it back.”
The “best interest of shareholders”?
CK Hutchison will receive over $19 billion in cash proceeds after adjusting for minority interests and loans. The company stated that the valuation is “compelling” and in the best interest of shareholders. However, the timing of the sale has raised questions.
Thomas Cullen noted that “it is unclear why CK Hutchison decided to sell at this time,” adding that the company has denied any connection to recent U.S. government statements. The sale also reduces CK Hutchison’s global footprint, particularly in the context of China’s Belt & Road Initiative.
The deal remains subject to regulatory approvals and due diligence. CK Hutchison has entered exclusive negotiations with the BlackRock-TiL consortium, with full access to operational data for review. The definitive documentation for the Panama Ports sale is expected to be signed by April 2, 2025.