Beijing Blocks Sale of Panama Canal Shipping Terminals to U.S. Investor

CK Hutchison has postponed the sale of its Panama Canal terminals to a U.S. investor due to Chinese governmental opposition and public pressure from former U.S. President Trump. The agreement, valued at $23 billion and scheduled for completion by April 2, remains intact but faces significant delays.

In a recent development, CK Hutchison has delayed the anticipated sale of its Panama Canal terminal operations to a U.S.-led consortium, which includes BlackRock and MSC’s TiL. Originally announced on March 4, the proposal involved a significant $23 billion transaction and was set for completion by April 2. This sale pertains to key port operations at Balboa and Cristobal, strategic terminals near the Panama Canal.

The decision surrounding the sale coincides with public statements from former President Donald Trump advocating for U.S. control over the Panama Canal, suggesting an underlying political context. Reports indicate that this deal has faced resistance from China’s government, as they have opposed foreign control of significant infrastructure assets.

Despite these challenges, it is important to note that the sale agreement has not been officially canceled; however, delays appear imminent, as confirmed by reports from sources including the South China Morning Post and Reuters. Furthermore, Chinese authorities have reportedly cautioned state-owned enterprises against involvement in new agreements related to Li Ka-shing’s business interests.

The planned sale of CK Hutchison’s port operations near the Panama Canal to a U.S. consortium has encountered significant political and governmental opposition, particularly from China. While the transaction has not been formally abandoned, the complications arising from external pressures suggest a high likelihood of delays in finalizing the deal.

Original Source: www.freightwaves.com