The Chinese government could block CK Hutchison’s sale of its global port facilities to US-based investor BlackRock and Mediterranean Shipping Company (MSC) unless Chinese state-owned shipping company Cosco is included, FreightWaves reported citing a Wall Street Journal (WSJ) article.
The proposed sale included two ports at the Panama Canal and more than 40 others around the world, all owned by Hong Kong-based logistics company CK Hutchison, the 17 July WSJ report said.
In March, CK Hutchison said it planned to sell its 80% share of port terminals through subsidiary Hutchison Port Holdings at 43 ports in 23 countries for US$22.8bn.
US President Donald Trump has described the Panama Canal as a strategic priority for the USA, the 17 July FreightWaves report said.
Based in Geneva, MSC is the world’s largest container shipping line, with more than 800 ships and a capacity of 5.6M 20ft equivalent units (TEUs), according to the report.
According to the WSJ report, which quoted anonymous sources, BlackRock, MSC and Hutchison were amenable to a Cosco stake.
At the time of the report, Hutchison, BlackRock and MSC had not responded to requests for comment and neither the White House or the Chinese media office had responded.
An agreement was not expected before a 27 July deadline for exclusive talks between BlackRock, MSC and Hutchison, the WSJ report added.
