BlackRock-backed group seeks to close CK Hutchison ports deal without Panama assets: report

[BENGALURU] A BlackRock-backed consortium is pushing to complete its acquisition of CK Hutchison’s global ports business without two terminals in Panama, after authorities seized the assets, Financial Times (FT) reported on Tuesday (Mar 3).

Swiss-Italian shipping firm Mediterranean Shipping Company (MSC) and the US-listed asset manager are said to be in talks with CK Hutchison to buy about 41 ports across Europe, South-east Asia and the Middle East, the report added, citing sources familiar with the negotiations.

Reuters could not immediately verify the report. BlackRock, MSC and CK Hutchison did not respond to Reuters’ request for comment.

In January, Panama’s top court ruled the concession for Hutchison’s Panama Canal terminals as unconstitutional, prompting authorities to take control of the assets last month.

Hutchison’s Panama Ports Company unit has since launched an international arbitration proceeding against the Central American country.

The Hong Kong-listed conglomerate has been seeking to sell its non-Chinese ports business, which spans 43 terminals in 23 countries.

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The two Panama Canal ports are at the heart of the US$23 billion deal announced last year, under which BlackRock would have taken control of the Panama assets and MSC the bulk of the remaining portfolio. REUTERS