CK Hutchison, the Hong Kong-based telecoms-to-retail conglomerate owned by tycoon Li Ka-shing, will not sign a deal next week to sell its two port operations near the Panama Canal to a BlackRock-led group. This decision comes amid increasing pressure from Beijing over the sale.
China’s market regulator announced that it would carry out an antitrust review of the Panama port deal to protect fair competition and safeguard public interests, as shown in a post on its official WeChat account on Friday. The review has raised concerns about the sale of strategically important assets in the region.
Earlier this month, CK Hutchison agreed to sell its $22.8 billion global ports business, which includes the two port operations near the Panama Canal, to a consortium led by BlackRock. The sale was expected to close with the signing of definitive documentation by April 2. However, sources familiar with the matter confirmed that this deadline will not be met, citing “obvious reasons.” These sources emphasized that the deal is not off, and negotiations are still ongoing.
This delay follows increasing political and regulatory scrutiny from Chinese authorities, who have expressed concerns over the potential loss of control over vital infrastructure. Local media reports, including Singtao Daily and The South China Morning Post, first broke the news of the delay.
The sale of the Panama ports has garnered significant attention in China, where critics argue it could undermine national interests. Pro-Beijing publications have accused CK Hutchison of cooperating with U.S. strategies to contain China, framing the deal as a betrayal. Chinese authorities have also raised concerns about divestments involving American buyers, signaling potential future barriers to deals involving Chinese companies and U.S. investors.
CK Hutchison has yet to comment on the situation, and negotiations are expected to continue, though Beijing’s opposition to the sale underscores growing geopolitical tensions surrounding global business transactions.
