China Lashes Out Over Sale of Panama Canal Ports
China Lashes Out Over Sale of Panama Canal Ports
Hong Kong-based CK Hutchison Holdings has decided to sell its majority stake in Panama Ports Company, which operates the Balboa and Cristóbal ports located at the entrance and exit points of the Panama Canal, to a U.S. consortium led by BlackRock . The deal, valued at $22.8 billion, has drawn sharp criticism from the Chinese government.
In an article published in Ta Kung Pao, a Beijing-backed newspaper, the sale was described as "power politics" and contrary to national interests. The article emphasized that CK Hutchison should "think twice." Following these criticisms, the company's shares lost more than 6% of their value on the Hong Kong stock exchange.
The deal covers CK Hutchison's 90% stake in Panama Ports Company as well as an 80% stake in Hutchison Ports, which operates 43 ports across 23 countries. These ports include facilities in the United Kingdom, Germany, Southeast Asia, the Middle East, Mexico, and Australia. The company plans to generate over $19 billion in cash from this sale.
U.S. President Donald Trump has repeatedly expressed concerns about China's influence over the Panama Canal and indicated his intention to reclaim control of the channel. In this context, BlackRock CEO Larry Fink held talks with the Trump administration and the U.S. Congress to support this acquisition.
Following the sale, the Chinese government expressed concerns that other business operations of CK Hutchison in China and Hong Kong could be negatively affected. The company's 2023 revenues derived approximately 14% from China and Hong Kong.
Key Takeaways:
CK Hutchison Holdings has decided to sell its Panama ports to a U.S. consortium led by BlackRock.
The Chinese government has criticized the sale harshly, characterizing it as "power politics."
The deal covers 43 ports in 23 countries with a total value of $22.8 billion.
U.S. President Donald Trump has previously expressed concerns about China's influence over the Panama Canal.
CK Hutchison's other business operations in China and Hong Kong may be negatively affected by this sale.
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News Links:
https://splash247.com/beijing-blasts-sale-of-hutchison-ports/
https://www.supplychainbrain.com/articles/41365-china-slams-sale-of-panama-canal-ports
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