Hong Kong-based conglomerate CK Hutchison, headed by magnate Li Ka-shing, will not proceed with signing a deal next week to sell its two key ports at the Panama Canal to the MSC/BlackRock consortium, according to recent reports.
Although the signing of the agreement was initially scheduled for April 2, following an announcement on March 4, the delay does not imply the deal is off.
However, the transaction has drawn criticism from Chinese authorities, while US President Donald Trump has praised it, viewing it as an opportunity to regain control over the strategic waterway.
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CK Hutchison’s subsidiary, Hutchison Ports, currently operates two (Balboa and Cristobal) of the five ports adjacent to the Panama Canal, which handles approximately 3% of worldwide maritime trade. Panama granted the company the concession in 1998 and extended it for another 25 years in 2021.
CK Hutchison finds itself in the middle of a politically charged controversy involving the sale of assets near the vital Panama Canal to a BlackRock/MSC group. The deal, valued at over US$20 billion, has come under scrutiny, especially from China.
The Hong Kong newspaper Ta Kung Pao, known for its pro-Beijing stance, argued in a March 21 editorial that the sale should be abandoned as it aligns too closely with US strategies aimed at containing China.
Meanwhile, according to Bloomberg News, Chinese officials have instructed state-owned enterprises to pause any new transactions with businesses associated with Li Ka-shing and his family.
