After Beijing’s ire, CK Hutchison baulks on Panama ports sale to BlackRock consortium
Hong Kong tycoon Li Ka-shingwaves goodbye to journalists as he formally retires after the CK Hutchison Holdings Annual General Meeting in Hong Kong, China, on May 10, 2018. — Reuters pic
Saturday, 29 Mar 2025 9:18 AM MYT
BEIJING, March 29 — Hong Kong’s CK Hutchison will not sign a deal next week to sell its two port operations near the Panama Canal to a BlackRock-led group, two people with direct knowledge of the matter said, as pressure mounted from Beijing.
China’s market regulator said it will carry out an antitrust review on the Panama port deal in accordance with a law to protect fair competition and safeguard the public interest, its official WeChat account showed late on Friday.
The telecoms-to-retail conglomerate owned by tycoon Li Ka-shing this month agreed to sell most of the global US$22.8 billion (RM101 billion) ports business, including assets it holds along the strategically important Panama Canal, to a group led by BlackRock.
Definitive documentation for the two port operations near the Panama Canal was expected to be signed by April 2, according to the sale announcement made on March 4.
One of the people, who declined to be identified due to the sensitivity of the matter, did not elaborate, saying only that the definite documentation would not be signed due to “obvious reasons”.
The person added the development does not mean the deal has been called off, and April 2 is not a hard deadline. The second source, who also declined to be identified for similar reasons, said talks are still very much underway.
Negotiation for the overall deal that covers a total of 43 ports in 23 countries is on an exclusive basis between CK Hutchison and the consortium for 145 days.
Local media including Singtao Daily and The South China Morning Post first reported the news.
CK Hutchison did not immediately respond to a Reuters request for comment.
The conglomerate has been caught in China’s crosshairs in the highly politicized deal which is expected to garner the firm more than US$19 billion in cash.
Chinese authorities have reacted negatively to plans by the conglomerate to sell its ports assets, while the deal was hailed by US President Donald Trump who said he wants to retake control of the strategic waterway.
“We are aware of the comments made by China,” US State Department spokesperson Tammy Bruce told a news briefing on Friday when asked about the Chinese regulator’s review. “It’s also no surprise that the CCP (Chinese Communist Party) is upset at this acquisition, which will reduce their control over the Panama Canal area.”
Over the past two weeks, pro-Beijing Hong Kong newspaper Ta Kung Pao has published a series of commentaries criticizing the deal, depicting it as a betrayal of China.
China’s Hong Kong and Macau Affairs Office reposted some of the commentaries on its website, fuelling speculation Beijing could try to scupper the sale.
A CK Hutchison unit operates two of the five ports adjacent to the Panama Canal, which manages about 3 per cent of the global sea-borne trade. Panama first awarded the concession to the company in 1998 to run the ports and extended it for another 25 years in 2021.
Panama’s Comptroller General told reporters this week an audit of the concessions would be ready in coming “days or weeks.”
Beijing’s criticism of CK Hutchison’s move to sell its ports business is a precursor to heightened political scrutiny of major Chinese business divestments involving American buyers, analysts have said.
Bloomberg News, earlier in the week, reported that Chinese authorities had told state-owned firms to hold off on any new deals with businesses linked to tycoon Li and his family. — Reuters
The Bullshit facade of the original Panama ports sale "the owner will be Hong Kong-based private company, no risk of Beijing Government political interference in the Panama Canal" is now laid bare.
ReplyDeleteThe fact is ALL China or Hong Kong so-called Private corporations owning infrastructure or key communications backbone in a foreign country comes with danger of CCP control or interference in your country's affairs
Mfer, have u taken a look at what ur mfering yank have done to private commercial transactions?
DeleteToshiba, Japan's leading chip producer, was targeted by the US over "national security concerns." This has coated the downfall of Toshiba, once a mighty semiconductor manufacturer.
Washington began targeting France Alstom as it became a formidable competitor of US giant General Electric (GE) in many countries and regions. Eventually GE reached an agreement with Alstom to purchase Alstom's power and grid businesses, dismembering the global industrial giant.
So ain't there enough past records to show who r that Manipulator in destroying Private corporations owning infrastructure or key communications backbone in a foreign country to benefit itself.
Loop… u r blind to that while inhalingng yr daily farts!
https://www.reuters.com/markets/deals/scandal-delisting-toshibas-long-running-crisis-2023-12-19/
DeleteHere are the real facts of Toshiba's fate.
In 2015 Toshiba was engulfed by exposure of a massive Accounting fraud scandal that had overstated it's profits by over $ 1.5 Billion. This was a Toshiba self-inflicted wound, nothing to do with the US Government.
Later in 2015, it was revealed that Westinghouse a US nuclear reactor company that Toshiba had bought, had to take a multi-billion dollar loss.
in the aftermath of Fukushima, all nuclear plant construction business worldwide had been badly hit.
Faced with multi-billion dollar losses, Toshiba was forced to raise cash by selling its profitable and valuable microcircuit business.
Such forced sales of valuable assets occur every day by businesses that run into cash flow problems, though rarely on the scale that Toshiba faced in 2015.
Stupid to spin it as US government evil .
Which WTO policies forbid the business transactions between Russia & Japan? Who the hell is the Yank to interfere?
DeleteMoreover, the financial debacles of Toshiba happened after the Yank forced Toshiba to sell its lucrative semiconductor business.
Who's stupid to spin the evil touch of the Yank?
AllBullyland ships (&ports) are designed for military use.
ReplyDeleteNational Defense Standards:
China's "Technical Standards for New Civilian Ships to Implement National Defense Requirements" mandates that new civilian ships are designed and built with the capability to serve national defense needs if mobilized.
Covered Vessel Types:
The standards cover five categories of vessels: container, roll-on/roll-off, multipurpose, bulk carrier, and break-bulk.
The standards are the result of a five-year joint effort by the China Classification Society's Shanghai Specifications Institute and ship experts from the People's Liberation Army's Nanjing Military Command.
Strategic Implications:
This policy aims to leverage China's vast civilian shipbuilding capacity for military purposes, enhancing the PLA's strategic projection and maritime support capabilities.
Dual-Use Capabilities:
Many shipyards that support China's commercial shipbuilding also produce warships, allowing for the leveraging of dual-use technologies, infrastructure, and materials.
Mfer, have you read the similar requirements of all warring nations, USofA included?
DeleteOoop… most of these Democratic nations have broken their industrial supply chains to implement a complete line of ship/port building abilities!
Doraleh (Djibouti)
ReplyDeleteHambantota (Sri Lanka)
Gwardar (Pakistan)
Kyaukpyu (Myanmar)
All built to Bullyland PLA Navy standards. Cut the Bullyshit.
500 yo Bullybase in Diego Garcia declare openly as Military. No pretenses, to protect international shipping against Hooters from Yemeni. 5000 yo Bullyland with largest Navy in the world and with so many bases in the Yindian Ocean don’t lift a finger to help.
Wakakaka…
Delete"500 yo Bullybase in Diego Garcia declare openly as Military. No pretenses, to protect international shipping against Hooters from Yemeni“
Mfer, u need to do better than that!
"5000 yo Bullyland with largest Navy in the world and with so many bases in the Yindian Ocean don’t lift a finger to help"
So those Chinese warships sailing around the Somalia water were just frictional gimmicks!
BTW how many of those Yank warships on duty in the Indian were fighting the Somalian pirates, or just given the zionist state a declared protection?
Mfer, j do need to brush up ur fart!
Diego Garcia is not really a naval base though some USN ships reload there but the main purpose of that island base is a kick-off point for the B52 aircraft and ilk, to bomb parts of the ME (Iran, Yemen etc), subcontinent if necessary and parts of Africa.
DeleteIn 2024, the People's Liberation Army Navy (PLAN) ships, including the Type 056A corvette "Wenshan", have been seen docked at the Ream Naval Base in Cambodia, prompting concerns about China's increasing naval presence in the region. Ream naval base was funded and built by Bullyland and will be one of their bases to cover the “dashed line” sea.
ReplyDeleteso what?
DeleteMany Yankee warships r docking anywhere allover the world. For what? The showing of the Yankee navy warring might with that famous world policing chant.