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China threatens to block Panama ports sale unless Cosco gets stake
Beijing has told BlackRock, MSC and Hutchison it will intervene if the Chinese shipping giant is excluded from the deal
Hong Kong-based CK Hutchison announced in March it would sell its 80% stake in a 43-port business valued at US$22.8 billion. (EPA Images pic)
BEIJING: China is threatening to block the sale of more than 40 ports, owned by Hong Kong-based CK Hutchison, to BlackRock and Mediterranean Shipping Company (MSC) if Chinese shipping company Cosco does not get a stake, the Wall Street Journal reported on Thursday, citing unnamed sources.
BlackRock declined to comment on the report, when contacted by Reuters. CK Hutchison, MSC and Cosco did not immediately respond to Reuters requests, while the Chinese government could not be immediately reached outside office hours.
Chinese officials have told BlackRock, MSC and Hutchison that if Cosco is left out of the deal, Beijing would take steps to block Hutchison’s proposed sale of the ports, the newspaper said.
Tycoon Li Ka-shing’s CK Hutchison in March announced it would sell its 80% holding in the ports business, which encompasses 43 ports in 23 countries. The business has an enterprise value of US$22.8 billion, including debt.
After much scrutiny and criticism in China, Hong Kong conglomerate CK Hutchison confirmed in May Italian billionaire Gianluigi Aponte’s family-run MSC, one of the world’s top container shipping groups, was the main investor in a group seeking to buy the ports.
BlackRock, MSC and Hutchison all are open to Cosco taking a stake, WSJ said.
However, the parties would likely not reach a deal before a previously agreed upon July 27 deadline for exclusive talks between BlackRock, MSC and Hutchison, the report added.
The proposed sale has also drawn the attention of US President Donald Trump, who has repeatedly expressed his desire to reduce Chinese influence around the Panama Canal and termed the deal a “reclaiming” of the waterway after it was first announced.
Reuters could not immediately verify the WSJ report.
BlackRock declined to comment on the report, when contacted by Reuters. CK Hutchison, MSC and Cosco did not immediately respond to Reuters requests, while the Chinese government could not be immediately reached outside office hours.
Chinese officials have told BlackRock, MSC and Hutchison that if Cosco is left out of the deal, Beijing would take steps to block Hutchison’s proposed sale of the ports, the newspaper said.
Tycoon Li Ka-shing’s CK Hutchison in March announced it would sell its 80% holding in the ports business, which encompasses 43 ports in 23 countries. The business has an enterprise value of US$22.8 billion, including debt.
After much scrutiny and criticism in China, Hong Kong conglomerate CK Hutchison confirmed in May Italian billionaire Gianluigi Aponte’s family-run MSC, one of the world’s top container shipping groups, was the main investor in a group seeking to buy the ports.
BlackRock, MSC and Hutchison all are open to Cosco taking a stake, WSJ said.
However, the parties would likely not reach a deal before a previously agreed upon July 27 deadline for exclusive talks between BlackRock, MSC and Hutchison, the report added.
The proposed sale has also drawn the attention of US President Donald Trump, who has repeatedly expressed his desire to reduce Chinese influence around the Panama Canal and termed the deal a “reclaiming” of the waterway after it was first announced.
Reuters could not immediately verify the WSJ report.
The disinformation that the CCP had nothing to do with the Panama ports deal , it was purely a commercial purchase by a Hong Kong company is now fully exposed as a lie.
ReplyDeleteCCP has strong geo strategic interests in getting control over Panama ports , and it is good that it is now out in the open.
'The disinformation that the CCP had nothing to do with the Panama ports deal'
DeleteU know disinformation?
mfer, equally applies to the Yank, in a geopolitical setting!