China's Strategic Port Deal Struggle: The Cosco Stake Dilemma

China is allegedly considering a veto on the sale of over 40 ports, owned by Hong Kong's CK Hutchison, to BlackRock and the Mediterranean Shipping Company (MSC), unless the Chinese shipping company Cosco is included in the deal, according to a report by the Wall Street Journal citing unnamed sources.

While BlackRock chose not to provide comments to Reuters regarding the report, CK Hutchison, MSC, and Cosco have yet to respond. The Chinese government was also unavailable for comment outside of standard working hours. According to the Wall Street Journal, Chinese authorities have conveyed to BlackRock, MSC, and Hutchison that if the deal excludes Cosco, Beijing may take measures to obstruct the ports' sale.

Earlier in March, CK Hutchison, controlled by magnate Li Ka-shing, unveiled plans to divest its 80% stake in the ports, worth $22.8 billion including debt, spanning 43 ports in 23 countries. The MSC, led by Italian billionaire Gianluigi Aponte, emerged as the principal investor. Although BlackRock, MSC, and Hutchison are amenable to Cosco's involvement, the parties may not finalize an agreement before the July 27 exclusivity deadline set for discussions.

(With inputs from agencies.)