According to multiple international media reports, China initially pushed for Cosco to acquire a 20–30 per cent stake in the purchasing consortium. Negotiations on Cosco’s entry continued even after the exclusivity agreement between CK Hutchison and the MSC–BlackRock consortium expired on 27 July 2025. However, the situation escalated in December, when Beijing reportedly insisted that Cosco be granted veto rights or a controlling position in the acquiring entity.
That demand was rejected by both MSC and BlackRock, which have ruled out any arrangement that would allow a minority partner to block strategic decisions. The proposal has also met strong resistance in Washington, where the presence of Chinese state-controlled entities at the Panama Canal is seen as a national security concern.
Panama Canal terminals at the centre of the dispute
The deadlock is largely driven by two highly sensitive assets in Hutchison Ports’ portfolio: the Balboa terminal on the Pacific side of the Panama Canal and the Cristóbal terminal on the Atlantic side. CK Hutchison controls both through a 90 per cent stake in Panama Ports Company.
Since returning to the White House, Donald Trump has repeatedly stated that Chinese-linked operators should be removed from strategic infrastructure connected to the canal. Beijing, on the other hand, is unwilling to see the terminals transferred into Western-controlled hands without maintaining influence through Cosco.
Despite the political impasse, CK Hutchison does not appear to be under immediate financial pressure. The group continues to generate strong cash flow from its global port operations, reducing any urgency to accept unfavourable conditions.
Legal and competition concerns add further uncertainty
The transaction is also complicated by developments in Panama itself. The Panamanian government has launched legal action and investigations into the previous 30-year extension of the Panama Ports Company concession, raising the possibility that the current contractual framework could be challenged or invalidated.
At the same time, concerns have been raised about market concentration. The Panama Canal Authority has warned that MSC already has a substantial presence in the canal area, including operations at Rodman and involvement in a new terminal project in Colón. Further expansion could give the Swiss shipping group significant control over container capacity linked to the canal.
No resolution before 2026
With Beijing hardening its position, and both the consortium and the US refusing to concede control or veto rights to Cosco, the negotiations have reached a stalemate. Industry sources now expect the issue to be revisited in 2026 at the earliest, with no clear pathway to a compromise.
For the time being, the sale of one of the world’s most strategically important port portfolios remains frozen, caught between Chinese state interests, US political pressure and growing regulatory scrutiny.
