CK Hutchison seeks Chinese partner after exclusive talks expire
HONG Kong-based CK Hutchison is seeking to bring in a Chinese investor as a key partner for its $22.8bn port deal after exclusive negotiations with a consortium of BlackRock and Mediterranean Shipping Co expired.
The company confirmed on Monday that the 145-day exclusivity period for talks with the consortium expired on July 27. Discussions remain ongoing, however, with the group now inviting a big Chinese investor — widely seen as Cosco — into the process.
The statement added that changes to the consortium structure and deal terms would require approval from relevant authorities. CK Hutchison said it would allow sufficient time to pursue what it called the “New Arrangements”.
As Lloyd’s List previously reported, Chinese approval hinges on Cosco obtaining a meaningful role — possibly a veto right — to secure what it sees as vital supply chain assets. Although Beijing has not formally blocked the deal, recent government moves signal political resistance.
The proposed inclusion of Cosco would give China a formal voice in the deal.
“Cosco, BlackRock and MSC are widely seen as representing Chinese, US and European interests respectively,” one market observer toldLloyd’s List. “Should all three secure substantive roles in the consortium, it may mark a new tripartite geopolitical balance in global maritime investment.”
The port package includes 43 terminals in 23 countries, including two at the Panama Canal, a key maritime chokepoint.
“The ports are too strategic to be sold without Chinese oversight,” said an international relations observer. “If China is left out, the deal may fall through.”
Completion of the transaction will depend not only on commercial negotiations but also on the alignment of strategic interests among China, the US and Europe. Cosco has been approached for comment.
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