CK Hutchison Holdings, a Hong Kong-based conglomerate controlled by tycoon Li Ka-shing, recently announced it would not proceed with the planned $22.8 billion sale of its global port assets—including the strategic Balboa and Cristóbal terminals at the Panama Canal—to a consortium led by BlackRock and MSC's Terminal Investment Limited (TiL).
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The proposed deal, unveiled in March 2025, aimed to transfer a 90% stake in Panama Ports Company and an 80% interest in Hutchison Ports, encompassing 43 terminals across 23 countries. While CK Hutchison characterized the transaction as purely commercial, it quickly became entangled in geopolitical tensions. The U.S. government, under President Donald Trump, supported the sale as a means to reduce Chinese influence over critical maritime infrastructure. Conversely, Chinese authorities launched a security and antitrust review, with state media and pro-Beijing commentators criticizing the deal as a betrayal of national interests.
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In Panama, the deal faced additional hurdles. The nation's Supreme Court received an opinion from the Attorney General deeming CK Hutchison's port concession "unconstitutional," citing concerns over public welfare and market competition. Furthermore, the Comptroller General initiated a financial audit of Panama Ports Company, adding to the regulatory scrutiny.
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Given the mounting political and legal challenges from both China and Panama, CK Hutchison decided to halt the sale, opting not to sign the definitive agreement as initially planned. The company has stated that further details will be provided during its annual shareholder meeting on May 22.
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