by Lloyd's List

4 March 2025 (Lloyd's List) - A BLACKROCK-led consortium has reached a preliminary agreement with CK Hutchison to purchase its entire controlling stake in Hutchison Port Holdings, including its interests at Panama Canal ports.

The Hong Kong-based company has denied that the move is in response to political pressure from US President Donald Trump to win back control of the critical waterway for the US.

The two companies said the consortium, which also includes Global Infrastructure Partners and Mediterranean Shipping Company’s port arm Terminal Investment Ltd will buy 90% of Panama Ports, which operates the two ports in Balboa and Cristobal.

The deal for the 80% stake in HPH is worth about $22.8bn, which includes CK Hutchison’s controlling interest in 43 other ports comprising 199 berths in 23 countries. Included in the deal will be HPH’s management resources, operations, terminal operating systems, IT and other systems, and other assets appertaining to control and operations of those ports, according to CK Hutchison.

“This transaction is the result of a rapid, discrete but competitive process in which numerous bids and expressions of interest were received,” said CK Hutchison, co-managing director Frank Sixt, who also denied the agreement came in response to the assertion of political pressure of Hutchison’s port interests in Panama.

“I would like to stress that the transaction is purely commercial in nature and wholly unrelated to recent political news reports concerning the Panama Ports,” he said.

The sale does not include the Hutchison Port Holdings Trust, which operates ports in Hong Kong and Shenzhen, as well as South China or any other ports in mainland China.

Commenting on the prospective deal, TIL chairman and MSC president Diego Aponte said that if the transaction closes the group looks forward to welcoming HPH into its larger family.

“We are very focused on this industry, and we know that the investment in Hutchison Ports will be a very viable investment commercially,” said Aponte.

The deal is subject to legal and regulatory approvals. CK Hutchison said that, as a result “investors should exercise caution in dealing with CK Hutchison shares until the transaction has closed”.

The units being sold are Hutchison Port Holdings S.a.r.l (HPHS) and Hutchison Port Group Holdings Limited (HPGHL).