CK Hutchison Proceeds with Panama Canal Port Sale Despite CCP Opposition

The image shows a partial view of the Panama Canal. (Video screenshot)

[People News] Hong Kong’s richest man, Li Ka-shing, and his CK Hutchison Holdings had previously announced plans to sell its Panama Canal port operations to a consortium led by U.S. firm BlackRock. The deal faced strong criticism from various Chinese Communist Party (CCP) factions. However, Bloomberg reported on Wednesday (26th), citing sources, that CK Hutchison is proceeding with the transaction as planned, aiming to sign the final agreement by April 2, without being deterred by Beijing’s objections.

According to Radio Free Asia, after CK Hutchison announced its plan to sell the Panama Canal port operations to BlackRock and its consortium, the Hong Kong and Macau Affairs Office and the Liaison Office of the Central People’s Government in Hong Kong repeatedly republished critical commentaries. Ta Kung Pao accused CK Hutchison of “betraying and selling out all Chinese people” and urged the company to withdraw from the deal. Hong Kong Chief Executive John Lee also stated that the transaction would be handled "in accordance with laws and regulations." Reports suggest that CCP leader Xi Jinping is furious about the deal, as it would mean losing a key bargaining chip in negotiations with the U.S. Despite this, Bloomberg sources indicated that all parties are currently finalizing due diligence, tax, accounting, and other deal terms, still targeting the original deadline of April 2 for signing the final agreement.

The report also noted that negotiations on the Panama port deal, along with 41 other CK Hutchison port transactions, are progressing. If completed, the deal would generate $19 billion in revenue for CK Hutchison. Securities exchange filings reveal that CK Hutchison and the BlackRock-led consortium have a 145-day exclusive negotiation period, leaving little room for Chinese state-owned enterprises and other potential bidders to participate. A spokesperson for BlackRock declined to comment, and CK Hutchison also did not respond.

The report further stated that investment banking giant Goldman Sachs facilitated the port deal, which investors see as Li Ka-shing’s way of exiting political risks. However, the transaction aligns with former U.S. President Donald Trump’s stance on the Panama Canal, sparking fierce criticism from the CCP. Trump reportedly views the deal as a victory over Chinese interests “in America’s backyard,” turning Panama into a symbol of the U.S.-China struggle for global influence. Xi Jinping’s frustration suggests he also recognizes the strategic importance of the Panama Canal and dislikes being portrayed as the loser in the situation.

CK Hutchison Stock Sees Three-Day Rally

According to available data, the BlackRock-led consortium includes Global Infrastructure Partners LP (a BlackRock subsidiary) and container terminal operator Terminal Investment Ltd., which is backed by a Geneva-based shipping company, BlackRock, and the Singaporean government.

On Wednesday (26th), CK Hutchison’s stock saw its third consecutive day of gains, rising as much as 3.9% in early trading before closing at HK$45.3, marking a three-day upward trend.