CK Hutchison Holdings, the Hong Kong conglomerate controlled by billionaire Li Ka-shing, is advancing plans to divest its global ports business in a landmark transaction. Last month, CK Hutchison announced its intention to sell its 80% stake in a portfolio of 43 ports across 23 countries—including two strategically crucial terminals on either side of the Panama Canal—to a consortium led by BlackRock and Global Infrastructure Partners, with an equity value of approximately $14.2 billion and an enterprise value of $22.8 billion. The deal, which excludes terminals in Hong Kong and mainland China, marks one of the largest port asset sales in history and has ignited geopolitical debate, with U.S. President Donald Trump praising the move as a “reclaiming” of the canal, while Chinese state media decried it as a betrayal of national interests, prompting an antitrust review by China’s market regulator.
Singapore’s PSA International, which is wholly owned by state investor Temasek, is also considering selling its 20% stake in CK Hutchison’s ports business. PSA acquired this stake for $4.4 billion in 2006 and has previously weighed divestment, though earlier efforts were paused due to a downturn in global shipping. The current decision to proceed will depend on whether CK Hutchison finalizes its sale to the BlackRock-led consortium, with both parties now in exclusive negotiations for a 145-day period. PSA’s potential exit would further reshape the global port landscape, as the new ownership structure would see Mediterranean Shipping Company (MSC), through its subsidiary Terminal Investment Limited, become the world’s leading port operator by terminal count.
The proposed transactions underscore shifting dynamics in global infrastructure ownership, with Western investors and shipping giants poised to take over assets long held by Asian conglomerates. While the deals are framed as business decisions, they carry significant strategic weight, particularly regarding control over key maritime chokepoints like the Panama Canal. The outcome will not only affect the competitive balance among global port operators but also reflect broader geopolitical currents influencing international trade and investment.
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(Source: Hong Kong Economic Times | SCMP | Business Times | Investing.com)
