Hong Kong-based CK Hutchison is unlikely to finalize its $22.8 billion sale of a large portion of its port business anytime soon, as political tensions continue to mount. According to sources, the exclusive negotiation deadline, initially set for Sunday, will likely be extended.
The proposed deal covers 43 ports across 23 countries, including two near the strategic Panama Canal, and was to be sold to a consortium led by BlackRock and shipping giant MSC, owned by Italian billionaire Gianluigi Aponte. However, the agreement has taken a political turn amid the intensifying U.S.–China trade war.
The 145-day exclusivity period was part of the terms disclosed in March. Although the first phase — the sale of two port operations near the Panama Canal — had a deadline of April 2, the documents remain unsigned.
⚠️ Deal Risks:
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China’s antitrust regulator warned it is closely monitoring the sale and advised against bypassing regulatory scrutiny.
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Pro-Beijing media slammed the deal as a betrayal of national interests.
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Former U.S. President Donald Trump previously urged blocking Chinese control over Panama Canal–adjacent ports and welcomed the sale as “taking it back.”
Recent developments have further complicated the picture. A source told Reuters that Chinese port operator COSCO is now exploring joining the consortium and is requesting veto power or equivalent rights within the deal.
🎙️ Expert Commentary:
“At this point, it’s unrealistic to expect a direct sale to the current consortium,” said Jackson Chan, senior manager at FSMOne Hong Kong.
“The biggest risk to the deal is the Trump administration’s stance, especially if a Chinese company like COSCO gets involved,” noted Kathy Seifert, analyst at CFRA Research.
“If COSCO joins, Trump — already overwhelmed with issues — will be furious,” said David Blennerhassett, strategist at Ballingal Investment Advisors.
