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A consortium backed by BlackRock and Mediterranean Shipping Company is working to finalise its approximately USD 23 billion acquisition of CK Hutchison's global ports portfolio, excluding two Panama Canal terminals after Panama's Supreme Court voided their concession. The revised deal now focuses on about 41 ports across Europe, Southeast Asia and the Middle East. Panama Ports Company has initiated international arbitration against the government over the asset takeover. Discussions between the consortium and CK Hutchison are ongoing as the parties aim to close the amended transaction.
A consortium supported by BlackRock and Mediterranean Shipping Company (MSC) is seeking to complete its acquisition of CK Hutchison's international ports business without including two terminals located along the Panama Canal. The move follows a ruling by Panama's Supreme Court, which declared the concession granted to Panama Ports Company unconstitutional, resulting in the government assuming control of the Balboa and Crist bal terminals. Advertisement
The transaction, valued at approximately USD 23 billion, was originally structured to include 43 ports across 23 countries. Under that arrangement, BlackRock was expected to acquire control of the Panama terminals, while MSC would take ownership of the remaining global assets. With the Panama concessions now voided, the focus has shifted to the sale of around 41 ports located across Europe, Southeast Asia and the Middle East.
The Panama Canal assets had been operated for nearly three decades by Panama Ports Company, a subsidiary of Hong Kong-listed CK Hutchison. Following the court decision, Panamanian authorities took over the terminals, bringing an abrupt end to Hutchison's long-standing presence in the canal zone. The ruling significantly altered the structure of what was one of the largest global port transactions in recent years.
Panama Ports Company has since initiated international arbitration proceedings against the Panamanian government, challenging the termination of its concession agreement. The arbitration process is expected to run parallel to the revised sale discussions.
Negotiations between the BlackRock-backed consortium, MSC and CK Hutchison are ongoing to finalise the amended transaction structure. None of the parties have publicly commented on the current stage of discussions. Market observers note that the exclusion of the Panama assets reduces geopolitical sensitivity around the deal but also removes two strategically important terminals from the portfolio.
CK Hutchison has been exploring options to monetise its non-China port assets as part of a broader capital recycling strategy. The sale of the remaining terminals, if completed, would represent a significant reshaping of its global infrastructure holdings.
Source Reuters
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