Hong Kong Chief Executive Addresses CK Hutchison’s $19 Billion Global Port Sale
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The PSA Panama International Terminal in Panama City, Panama on Feb. 25, 2025.
Hong Kong Chief Executive John Lee criticized the use of coercive tactics as he addressed CK Hutchison Holdings Ltd.’s planned sale of its controlling interest in Panama’s ports amid uncertainty about the deal.
Hong Kong billionaire Li Ka-shing’s CK Hutchison Holdings has announced plans to sell 43 ports across 23 countries, including two major ports in Panama, to a consortium led by U.S. asset manager BlackRock in a blockbuster deal worth more than $19 billion. The deal came after pressure from Donald Trump, the U.S. president.
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- CK Hutchison Holdings plans to sell 43 ports worldwide, including two major ports in Panama, to a consortium led by U.S. asset manager BlackRock, in a deal over $19 billion, amid political tensions and regulatory scrutiny.
- Hong Kong's Chief Executive John Lee criticized coercive tactics in international trade, ensuring legal compliance and fair treatment for businesses, while the deal's completion depends on various regulatory and shareholder approvals.
- The transaction is seen as lucrative for CK Hutchison, valued at $22.8 billion, drawing attention due to geopolitical stakes and potential rival bids from Chinese port operators.
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Who’s Who
- CK Hutchison Holdings Ltd.
- CK Hutchison Holdings Ltd. is a company owned by Hong Kong billionaire Li Ka-shing. It plans to sell 43 ports, including significant ones in Panama, to a consortium led by U.S. asset manager BlackRock, in a deal worth over $19 billion. The sale has faced scrutiny and negotiations are ongoing. Despite political concerns, CK Hutchison maintains that the sale is purely commercial, with an estimated valuation well above recent market transactions.
- BlackRock
- BlackRock is a U.S. asset manager leading a consortium interested in acquiring 43 ports from CK Hutchison Holdings, including key ports in Panama, in a deal exceeding $19 billion. The consortium, known as the BlackRock-TiL Consortium, is involved in exclusive negotiations, although the deal is subject to regulatory approvals and other conditions. BlackRock's partner in the consortium, Terminal Investment Ltd., is associated with Mediterranean Shipping Company (MSC), whose key figure has engaged in talks with CK Hutchison.
- Goldman Sachs
- Goldman Sachs is involved in the valuation of CK Hutchison’s port sale, estimating the deal’s valuation at 14 times the company’s expected 2024 EBITDA. This valuation is notably higher than the 8 to 11 times seen in recent private and listed port transactions.
- Mediterranean Shipping Company
- The Mediterranean Shipping Company (MSC) is a key player in the consortium with BlackRock seeking to acquire CK Hutchison's ports, including major ones in Panama. Diego Aponte, heir to MSC, is involved in the negotiations, having visited CK Hutchison's Hong Kong headquarters for talks. MSC has not publicly commented on its involvement in the deal.
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What Happened When
- Days Before the Deal was Announced：
- The Panamanian government, under pressure from Trump's rhetoric, launched an audit of Hutchison Ports PPC
- March 13, 2025：
- Diego Aponte visited CK Hutchison's Hong Kong headquarters for closed-door talks with its chairman Victor Li
- March 14-15, 2025：
- A delegation led by Ma Hui met with Panamanian political leaders and think tanks
- March 18, 2025：
- John Lee addressed the deal, opposing coercive tactics and advocating for fair treatment of Hong Kong businesses
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