CK Hutchison's $23 Billion Ports Deal Hits a Crossroads – Eyes Strategic Shift Toward China

On July 28, CK Hutchison Holdings confirmed the expiration of its exclusivity period with the original buyer consortium for its global port assets, including its prized terminals at both ends of the Panama Canal. The company is now exploring a new direction — inviting a major Chinese strategic investor to join the deal.

The original $23B deal (including $5B in debt) involved a consortium of BlackRock’s GIP and MSC’s Terminal Investment Limited.

The ports portfolio spans 43 terminals in 23 countries, including the highly sensitive Balboa and Cristobal terminals in Panama.

Despite initial praise from Washington, Beijing reacted strongly, with state-backed media calling the transaction “a betrayal of all Chinese.”

CK Hutchison is now in talks to restructure the consortium to include a mainland Chinese investor, aiming to secure the necessary approvals from Chinese and other global regulators.

CK Hutchison, owned by the family of Hong Kong tycoon Li Ka-shing, has operated in Panama since 1997. As the company reconfigures the transaction, global supply chain stakeholders and policymakers will be watching closely.

by Xinde Marine New Chen Yang