A major Hong Kong conglomerate that had previously agreed to sell its two port operations at the Panama Canal now says it may bring a Chinese investor into the deal—a move that could align with Beijing’s interests but heighten scrutiny from the United States due to the sensitive geopolitical nature of the transaction.
CK Hutchison Holdings originally planned to sell port assets across numerous countries, including the ports at both ends of the Panama Canal, to a consortium that included the U.S. investment firm BlackRock Inc. That plan had been well received by former U.S. President Donald Trump, who has accused China of attempting to assert control over operations in Panama’s critical waterway. However, the proposed sale reportedly upset Beijing and triggered an anti-monopoly review by Chinese regulators.
Following months of stalled progress due to growing tensions between China and the United States, Hutchison announced on Monday that its exclusive negotiation period with the consortium had ended. Despite this, the company emphasized that it remains in talks with consortium members and is now considering adding a major Chinese strategic investor to the group. This restructuring, Hutchison stated, is necessary to secure approvals from all relevant authorities involved in the deal.
When asked about the development, a Chinese government spokesperson declined to comment specifically but noted that China would ensure oversight in accordance with national laws and protect its sovereignty, security, and market fairness.
Hutchison has operated the Balboa and Cristobal ports—located on either end of the Panama Canal—since 1997 through a subsidiary. The situation highlights the difficult position Hong Kong businesses often find themselves in, particularly amid heightened U.S.-China tensions. Companies with close ties to mainland China must balance national loyalty expectations with global business interests.
CK Hutchison is controlled by the family of Hong Kong billionaire Li Ka-shing. On March 4, the company revealed plans to sell its entire stake in Hutchison Port Holdings and Hutchison Port Group Holdings to a consortium that included BlackRock’s Global Infrastructure Partners and Terminal Investment Limited, a firm tied to the Mediterranean Shipping Company.
The deal sparked backlash in pro-Beijing media outlets, with one editorial calling it a betrayal of China. Chinese government offices handling Hong Kong affairs amplified some of these criticisms, signaling high-level dissatisfaction with the deal’s direction.
In May, Hutchison co-managing director Dominic Lai told shareholders that Terminal Investment was the lead investor. That company’s parent is headed by Italian shipping magnate Diego Aponte, who is reported to have longstanding ties to Li’s family.
The original agreement—worth nearly $23 billion including $5 billion in debt—would have handed control of 43 port operations in 23 countries to the buyer consortium, including the two strategically important ones at the Panama Canal. Approval from the Panamanian government is also a requirement.
Officials in Panama have maintained that the nation holds full sovereignty over the canal and that Hutchison’s role in managing the ports does not translate into Chinese ownership or control of the canal itself.
The exclusivity period for the negotiations officially ended on Sunday.
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