HONG KONG, CK Hutchison announced on Monday it is in discussions to include a major Chinese strategic investor in the consortium bidding for its global ports business, valued at US$22.8 billion. The move comes after Beijing raised regulatory concerns over the transaction amid ongoing geopolitical tensions between China and the United States.
CK Hutchison said on Monday it wants a major Chinese strategic investor to join the BlackRock-led consortium bidding for its US$22.8 billion ports business.
The Hong Kong-based conglomerate made the statement following the expiry of its exclusive negotiation period with the bidding consortium, which is led by U.S. asset manager BlackRock and MSC, the family-run shipping giant owned by Italian billionaire Gianluigi Aponte.
The proposed deal covers 43 port assets across 23 countries, including two strategically sensitive ports located along the Panama Canal. China COSCO Shipping Corp is reportedly looking to join the consortium, according to a source familiar with the matter.
CK Hutchison indicated that revisions to the consortium’s structure and transaction terms may be necessary to meet regulatory requirements and said it would allow additional time to ensure full compliance.
“The company has consistently maintained that it will not proceed with any transaction without approval from all relevant authorities,” CK Hutchison said in a filing to the Hong Kong Stock Exchange.
The end of the exclusivity period now opens the door for potential bids from other interested parties, according to a source with direct knowledge of the situation.
Shares of CK Hutchison rose 1.6% on Monday, outperforming the broader Hang Seng Index, which gained 0.9%.
The deal has stirred geopolitical tensions, particularly after former U.S. President Donald Trump publicly called for a return of U.S. influence over the Panama Canal and labeled the proposed acquisition as a means of “reclaiming” control. His administration previously criticized Chinese ownership of strategic ports in the region.
China’s market regulator, the State Administration for Market Regulation, said it will evaluate the deal in accordance with domestic laws to ensure fair competition and protect public interest. State-backed Chinese media, echoing Beijing’s position, criticized the original deal structure and suggested Chinese involvement was essential due to national interests.
CK Hutchison emphasized that any new investor must hold a “significant” stake within the consortium.
Analysts remain cautious. “A Chinese investor with majority control is likely to raise concerns, but a stake below 50% might satisfy both sides,” said David Blennerhassett of Ballingal Investment Advisors.
JPMorgan, in a client note, said that including COSCO could help ease Beijing’s concerns and improve chances of regulatory clearance. However, it also warned that not all 43 ports—especially the Panama assets—may be included in the final deal, and the composition of the buyer group could shift, potentially impacting the final valuation.
