CK Hutchison said on Thursday its planned US$22.8 billion sale of its ports business has a "reasonable chance" of moving forward following a proposal to add a Chinese strategic investor to the buying consortium. The company is seeking approval from authorities in China, the U.S., Britain, and the European Union.
The Hong Kong-based conglomerate announced in March plans to sell 43 ports in 23 countries, including two near the Panama Canal, to a group led by BlackRock and MSC, the shipping company run by Gianluigi Aponte's family. Beijing has been critical of the proposed sale, particularly given tensions around U.S.-China trade and security issues.
Former U.S. President Donald Trump had called for the U.S. to "take back" the Panama Canal from Chinese influence. CK Hutchison's ports are not part of the canal itself but include two locations nearby that service container traffic.
"We are into a new stage of our deal," said Frank Sixt, group co-managing director and finance director, during an earnings conference. "There is a reasonable chance that those discussions will lead to a deal that is good for all of the parties, ourselves included. And most importantly, that we'll be capable of being approved by all of the relevant authorities."
In July, the company confirmed it was in discussions to include a Chinese "major strategic investor" in the transaction and noted that additional time would be taken to secure the necessary approvals. Sources have indicated the investor is COSCO, one of the world's largest marine transportation operators. They also noted COSCO was interested in a larger stake, while other parties preferred to limit its share to a minority. COSCO has not commented.
The inclusion of a Chinese partner is expected to address Beijing's security concerns. Analysts questioned management about the transaction during the results briefing, but chairman Victor Li and deputy chairman Canning Fok were absent.
The company reported an 11% rise in first-half underlying profit to HK$11.3 billion (US$1.44 billion), above UBS' forecast of a 6% increase. However, one-time non-cash accounting losses, including those related to the merger of 3UK and Vodafone UK, reduced net profit by 92% year-on-year to HK$852 million.
CK Hutchison said global trade and consumer demand remain volatile, with the ports division expected to face continued uncertainty from trade disputes and geopolitical risks in the second half of 2025.
Source: Reuters
