Little confidence Hong Kong’s Hutchison port deal can surmount ‘major hurdles’
China and Panama unlikely to sign off on US$23 billion deal before July 27 deadline for exclusive negotiation, legal and logistics experts say
Their analysis followed national security and anti-monopoly concerns cited by both countries, with a recent news report suggesting that a state-owned shipping company was now involved in the negotiation to ease Beijing’s concerns.
The transaction involves CK Hutchison Holdings selling stakes in 43 ports to a consortium led by Terminal Investment Limited, an affiliate of the world’s largest container line MSC, and US asset management giant BlackRock and Global Infrastructure Partners.
“The deal regarding price, due diligence and financing is basically done. What remains are the signoffs from the Panamanian and mainland authorities,” said Surinder Brrar, a professor of practice in global shipping and logistics at Polytechnic University.
He described these approvals as “big hurdles” that could derail the entire transaction if not surmounted.