Hong Kong conglomerate CK Hutchison is selling its international ports portfolio, including in Panama, to an investor group led by U.S. firm BlackRock and Terminal Investment Limited (Til), the port-arm of MSC owned by the Aponte family, for US$22.8 billion.
The sale announcement comes amid escalating tensions between the U.S. and China, particularly after recent comments from President Donald Trump, who criticized the Panama Ports Company (PPC) for allegedly ceding control of the Panama Canal to Chinese interests and suggested reclaiming authority over it.
The Hong Kong-listed port operator is selling its 80% stake in 43 ports worldwide, managed by its subsidiary Hutchison Ports, including terminals in Argentina, Indonesia, Mexico, Rotterdam, South Korea, Spain, and the UK.
The BlackRock-TiL consortium will also acquire a 90% stake in PPC, which oversees the ports of Balboa and Cristobal, located at the Atlantic and Pacific ends of the Panama Canal.
CK Hutchison said the stake sale also includes 199 berths at terminals in 23 countries globally, together with all management resources, operations, terminal operating systems, IT and other systems, and other assets related to the control and operations of those ports.
The sale, however, does not include any interest in the Singapore-listed HPH Trust, which operates ports in Hong Kong, Shenzhen, and South China, or any other ports in China.
"Acquisition of the HPH Ports Sale Perimeter will proceed on an expedited basis subject to the BlackRock-TiL Consortium conducting normal and usual confirmatory due diligence, settlement of definitive documentation, and receipt of any necessary regulatory approvals, amongst others," the joint announcement said.
"The aggregate Enterprise Value for 100% of HPH Ports Sale Perimeter, including the Panama Ports, has been agreed at US$22.8 Billion," it added, noting that the fundamental and essential terms of the PPC transaction and the HPH Transaction have also been agreed in principle, subject to definitive documentation.
The PPC Transaction definitive documentation is expected to be signed on or before April 2, 2025.
Meanwhile, the PPC transaction will proceed separately after the Government of Panama confirms the proposed terms of the purchase and sale.
"Purely commercial move" – CK Hutchison
Speaking on behalf of CK Hutchison, co-managing director Frank Sixt said the transaction resulted from a "rapid, discrete but competitive process in which numerous bids and expressions of interest were received."
Sixt noted that the transaction valuation agreed in principle is "compelling, and the transaction is clearly in the best interest of our shareholders."
After adjusting for minority interests and repayment of certain shareholder loans due from HPH to CK Hutchison, the transaction is expected to deliver cash proceeds to the group in excess of US$19 billion.
"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," CK Hutchison, co-managing director, added.
Speaking on behalf of TiL, chairman of TiL and president of the MSC Group, Diego Aponte, said: "Our relationship with Hutchison Ports goes back a long way and is a relationship of mutual respect and friendship. Furthermore, we are very pleased to partner with BlackRock and Global Infrastructure Partners (GIP), with whom we share a longstanding and terrific relationship."
"We have a very high regard toward the Hutchison Ports management team, and if this transaction closes, we look forward to welcoming them into our 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," Aponte added.
The joint announcement said pending signature of the definitive documents, CK Hutchison and HPH have entered into exclusive negotiation and non-disclosure arrangements with the BlackRock-TiL Consortium, which will be given full access to information and documentation for purposes of conducting confirmatory due diligence.