Li Ka-shing’s CK Hutchison Holdings Ltd expects to sell what remains of its global ports portfolio for its original US$22.8 billion (RM91.82 billion) valuation, even after losing two Panama terminals that had originally been included, according to people familiar with the matter.
The proposed sale of 43 global ports, to a buyer consortium that includes US investment firm BlackRock Inc, was expected to net CK Hutchison more than US$19 billion in cash when it was first announced in March 2025. That expectation has not changed, even with the Panama Canal facilities excluded from the package, the people said, speaking on condition of anonymity as the deliberations are private.
The talks are ongoing, and final details, including pricing, could still shift given the complexity of the deal, they added.
Panama invalidated CK Hutchison’s contract to operate the ports earlier this year following pressure from US President Donald Trump. The Hong Kong conglomerate and its unit, Panama Ports Co, have since launched separate international arbitration claims challenging the decision, seeking damages of at least US$3.5 billion. Any compensation arising from those cases is expected to be shared between CK Hutchison and the buyers, one of the people said.
The Panama facilities had accounted for only about 4% of the portfolio’s original price. According to one of the people, the price of the remaining 41 ports is believed to have risen enough to offset their loss, as buyers increasingly view them as logistical assets generating stable income amid rising geopolitical tension.
Company representatives, bankers and lawyers continue to meet weekly to negotiate deal terms, the people familiar with the matter said. The sale has become a flashpoint in the broader US-China rivalry, with tensions running especially high over the Panama terminals, as Washington vows to protect its interests in Latin America while Beijing expands its influence in the region.
Hopes for a political breakthrough have been renewed following news that Chinese leader Xi Jinping plans to meet Trump during his September trip to the US, though the parties remain cautious given that a similar high-level meeting in May between the two failed to yield results, according to the people.
A spokesperson for BlackRock declined to comment. CK Hutchison and members of the buyer consortium — including China Cosco Shipping Corp, China Merchants Bank Co and Italian billionaire Gianluigi Aponte’s MSC Mediterranean Shipping Co — did not respond to requests for comment.
Mired Down
The deal hit roadblocks soon after it was announced, with CK Hutchison drawing Beijing’s ire over its agreement to sell ports in strategically significant global locations to a consortium backed by BlackRock. To secure China’s approval, the group invited state-owned companies, including Cosco, to join the buyer consortium.
Discussions have remained bogged down as the parties navigate regulatory hurdles across the various countries where the ports are located, while also attempting to reconcile competing demands from prospective buyers.
Talks have centred on a proposal to split the ports into different ownership structures, according to reports. That arrangement could give Chinese buyers larger stakes and greater control in certain locations, while other consortium members take the lead elsewhere.
Panama’s forced takeover of the two terminals added further uncertainty to the deal, with Beijing warning that the country could pay a “heavy price” for the move. Parties involved in the sale are likely to seek positive signals from both China and the US before finalising the transaction’s terms, according to reports.
There are signs, however, that tensions between Beijing and Panama may be easing. The two sides are reportedly moving toward renewing an agreement that gives Panama-flagged vessels favourable treatment at Chinese ports, according to local media reports in August, citing China’s ambassador to the country.
