Chinese Giant Eyes Stake in CK Hutchison's Port Deal Amid US-China Tensions
CK Hutchison's $22.8 billion deal with a U.S.-Italian consortium to sell its global ports business faces scrutiny amid U.S.-China tensions. China COSCO Shipping is interested in joining, requiring regulatory approval changes. The deal involves 43 ports, including strategic locations along the Panama Canal.
CK Hutchison, the Hong Kong-based conglomerate, announced ongoing negotiations with a consortium aiming to acquire its $22.8 billion ports business, involving a potential addition of a prominent Chinese investor. This revelation follows geopolitical tensions influencing the deal, initially struck with BlackRock and MSC.
The preliminary agreement includes 43 ports across 23 nations, notably two strategic locations near the Panama Canal. China COSCO Shipping Corporation expressed interest in the consortium, as heightened Sino-U.S. tensions loom over the proceedings, complicating regulatory approvals.
As the exclusivity period concludes, CK Hutchison remains open to other bidders amid criticisms from state-backed Chinese media. The firm insists on unanimous authority approval for any transaction, with geopolitical elements potentially altering the deal's structure and pricing.
(With inputs from agencies.)
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