Hong Kong conglomerate CK Hutchison is not expected to finalise the sale of its two port operations near the Panama Canal next week, amid rising political pressure from Beijing, according to sources cited by Reuters.
The $22.8 billion deal, which would see most of CK Hutchison’s global port assets transferred to a consortium led by U.S. investment firm BlackRock, includes two terminals in the strategically important Panama Canal area. Definitive documentation for the Panama assets was initially expected to be signed by 2 April.
Two individuals with direct knowledge of the matter told Reuters that the deal will not be signed by the target date, citing “obvious reasons” but declining to elaborate. However, they clarified that negotiations are still ongoing and the delay does not mean the deal has been cancelled.
The development follows confirmation by China’s market regulator that it will conduct an antitrust review of the transaction. The State Administration for Market Regulation stated via its official WeChat account that the review is intended to safeguard fair competition and public interest.
The sale has sparked criticism in Chinese state-backed media. Hong Kong newspaper Ta Kung Pao, which is known for its pro-Beijing stance, has published a series of editorials opposing the transaction. China’s Hong Kong and Macau Affairs Office also reposted some of the commentaries, fuelling speculation that Beijing may intervene more directly.
CK Hutchison, controlled by billionaire Li Ka-shing, has faced scrutiny in China over plans to divest from port assets. According to Bloomberg, Chinese authorities have recently advised state-owned firms to pause any new business dealings with companies linked to Li and his family.
The ports in question are two of five terminals located near the Panama Canal, a key maritime route that handles approximately 3% of global sea trade. CK Hutchison first obtained the concession to operate the facilities in 1998, with an extension granted in 2021 for a further 25 years.
The transaction has drawn political attention from both Beijing and Washington. U.S. State Department spokesperson Tammy Bruce commented on Friday that it was “no surprise” that the Chinese Communist Party was displeased with the deal, which she said would “reduce their control over the Panama Canal area.”
An audit of CK Hutchison’s port concessions in Panama is currently underway, with the country’s Comptroller General saying results would be published in the coming days or weeks.
CK Hutchison has not issued a comment on the delay.
