CK Hutchison's proposed sale of more than 40 ports to BlackRock and MSC is facing potential obstruction by China. The Wall Street Journal reports that Chinese authorities demand that Cosco, a Chinese shipping company, acquire a stake in the deal or risk Beijing's intervention to block the sale.
Chinese officials have communicated to BlackRock, MSC, and CK Hutchison that Cosco's exclusion might prompt China to halt the transaction involving these ports. The sale involves a substantial asset, including an enterprise value of $22.8 billion, with 43 ports spread across 23 countries. Despite the potential for disruption, BlackRock, when approached, declined to comment on the situation, while CK Hutchison, MSC, and Cosco have not yet issued any statements.
At a recent press briefing, Lin Jian, a spokesperson for China's foreign ministry, emphasized that China remains opposed to "the use of economic coercion, hegemony, bullying, and infringement of the legitimate rights and interests of other countries." This sentiment underscores the tensions surrounding the potential sale and reflects China's stance on international business practices.
The current scenario raises questions about the future of the transaction amidst geopolitical concerns. The involvement of prominent global players like BlackRock and MSC highlights the complexity and multi-layered interests inherent in international port operations, particularly when intersected by national interests as seen in this case.
Source: Reuters
