CK Hutchison Holdings is in talks to add a major Chinese strategic investor to a $22.8 billion ports divestment deal, following pressure from Beijing regulators and intensifying geopolitical tensions over port control along the Panama Canal. The Hong Kong-based conglomerate confirmed the negotiations on Monday, one day after the exclusive period with an existing U.S.-European consortium expired.
The original buyer group-led by BlackRock Inc. and Terminal Investment Limited, the port arm of Mediterranean Shipping Company (MSC)-had agreed in March to acquire Hutchison's port operations in 23 countries, including two terminals along the strategically sensitive Panama Canal. But the proposed deal triggered regulatory pushback from China's State Administration for Market Regulation and sparked a backlash in Chinese state-backed media, which labeled the transaction a betrayal.
"The Group remains in discussions with members of the consortium with a view to inviting [a] major strategic investor from the PRC to join as a significant member of the consortium," CK Hutchison stated in a filing to the Hong Kong Stock Exchange.
According to sources cited by Reuters, state-run China COSCO Shipping Corp. is in discussions to join the consortium. JPMorgan analysts noted that adding COSCO could ease Beijing's concerns and improve the chances of regulatory approval. However, changes to the buyer mix may prompt a reevaluation of the ports included in the deal and potentially alter the final price.
"This is an interesting development. A PRC investor with majority control of the consortium sounds like a non-starter in my view," David Blennerhassett of Ballingal Investment Advisors wrote in a note on SmartKarma. "An investor with a less than 50% stake you would think should keep everyone happy."
The move comes amid rising geopolitical friction, especially surrounding the Panama Canal. President Donald Trump praised the initial sale, portraying it as a step toward "reclaiming" influence over the canal and accusing China of undue control. His administration has repeatedly called for the removal of Chinese-affiliated operators from key global trade chokepoints.
CK Hutchison, controlled by Hong Kong billionaire Li Ka-shing's family, said no transaction would proceed without the approval of all relevant authorities. A person familiar with the matter told Reuters that Hutchison is now open to new bids following the end of the exclusivity period. The company declined to comment beyond its exchange filing.
The initial transaction would have transferred control of 43 ports-including Balboa and Cristobal at both ends of the Panama Canal-and required approvals from multiple jurisdictions, including Panama. The Panamanian government has stated it maintains full sovereignty over the canal and dismissed claims of Chinese control as misleading.
Chinese Foreign Ministry spokesperson Guo Jiakun responded to questions about the transaction by saying, "The Chinese government will conduct supervision in accordance with the law, firmly safeguard national sovereignty, security and development interests, and maintain market fairness and justice."
