CK Hutchison, the Hong Kong conglomerate controlled by billionaire Li Ka-shing, has delayed signing a multibillion-dollar agreement to sell its Panama Canal port operations to a BlackRock-led consortium, following mounting pressure from Beijing, according to a report published Friday by the South China Morning Post.
The $19 billion deal was expected to be signed on April 2, according to a March 4 announcement. But a source close to the company told the SCMP that the agreement will not be finalized next week, though it has not been canceled. Neither CK Hutchison nor BlackRock responded to requests for comment.
The transaction involves the sale of two of the five ports adjacent to the Panama Canal, one of the world's most strategically vital maritime corridors, which handles roughly 3% of global seaborne trade. CK Hutchison was first granted a concession in 1998 to operate the terminals and had that contract extended by the Panamanian government for another 25 years in 2021.
The delay comes amid reported disapproval from Chinese officials, who were angered that CK Hutchison did not seek approval from Beijing before moving forward with the deal. The Wall Street Journal reported last week that Chinese President Xi Jinping had hoped to leverage the port issue in future negotiations with the Trump administration and viewed the sale as undercutting that strategy.
While the transaction was welcomed by the United States-with President Donald Trump praising efforts to increase American influence in the region-Chinese state media and political figures have pushed back. An editorial in Hong Kong's Ta Kung Pao, a pro-Beijing newspaper, described the transaction as "a perfect cooperation" with Washington's efforts to "contain China," and called for the deal to be scrapped.
Bloomberg also reported this week that Chinese authorities had instructed state-owned firms to suspend new transactions with companies connected to the Li family, signaling heightened sensitivity over the geopolitical implications of the sale.
