New Developments in the CK Hutchison Port Case? Reports Suggest Italian Shipping Giant to Co-Hold Panama Port with BlackRock!
According to comprehensive foreign media reports, Italian shipping giant Aponte family’s Mediterranean Shipping Company (MSC) is considering selling two Panama ports from CK Hutchison.
Previously, China had repeatedly pressured Li Ka-shing’s CK Hutchison Group to prevent the sale of Panama ports to a consortium linked to BlackRock. Reports quote informed sources revealing that the Italian giant Gianluigi Aponte and his son Diego Aponte, who control Mediterranean Shipping, have discussed the advancement of the port operations involving terminals in 41 ports across five continents. However, they are considering separating the most controversial Panama ports from the overall transaction to conduct new negotiations. Should these new negotiations be established, BlackRock would still take over the Panama Canal ports in conjunction with the Aponte family’s shared ownership.
Exclusive new agreement for Panama ports will grant BlackRock a 51% stake
Italy’s Aponte family’s Terminal Investment Ltd (TiL) is the main buyer in this transaction. After the completion of the port operations, it will have full ownership of all ports outside Panama. Reports suggest that the two Panama Canal ports under pressure from China are in exclusive negotiations, with CK Hutchison Group planning to sell the ports under a new exclusive agreement. Reportedly, this could delay the process for up to a year.
If the Panama ports deal is finalized, the Aponte family’s existing port operator TiL will acquire 49% of the two Panama ports from CK Hutchison Group, while BlackRock’s Global Infrastructure Partners will obtain a 51% stake.
The protracted Panama ports case
When President Trump took office at the beginning of the year, he mentioned reclaiming the Panama Canal, shortly after which CK Hutchison announced the intention to sell the ports. The Hong Kong and Macau Affairs Office continuously reposted major media criticisms of Li Ka-shing, leading to speculation about China’s extreme dissatisfaction with the transaction. A spokesperson for the Ministry of Foreign Affairs in Hong Kong and the Hong Kong authorities have repeatedly emphasized that the transaction will be handled according to the law. Subsequently, the State Administration for Market Regulation confirmed it is legally reviewing the CK Hutchison transaction. CK Hutchison originally planned to sign the final agreement on April 2, but it has not yet been completed.
The Panama ports case has become a key battleground in the US-China trade struggle
In fact, the Panama ports account for only 4% of the total transaction, indicating that this acquisition holds more political significance than commercial interest. Li Ka-shing, the founder of CK Hutchison, is expected to receive at least over $19 billion in cash upon completion of the transaction. CK Hutchison has faced strong criticism from China for deciding to sell most of its port business, valued at $22.8 billion, to BlackRock. As BlackRock represents the interests of American conglomerates, CK Hutchison must downplay its American assets. The Panama ports are crucial for China in advancing the Belt and Road Initiative, transforming this seemingly ordinary business transaction into a highly politically sensitive issue in the US-China trade war.
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