China’s State Administration for Market Regulation (SAMR) has issued a stern warning to CK Hutchison Holdings and other parties involved in the proposed $23 billion sale of Hutchison’s global ports business. SAMR is closely following the deal, which involves 43 overseas ports, due to concerns over potential antitrust violations and strategic implications.
The deal, led by US investment firm BlackRock, has come under intense scrutiny, particularly regarding two ports located at opposite ends of the Panama Canal. According to Marine Insight, SAMR has made it clear that “no part of this deal can proceed without first undergoing a formal antitrust review,” and any attempt to bypass this process could result in legal consequences. The warning follows a Wall Street Journal report suggesting discussions about separating the two Panama Canal ports from the rest of the transaction.
Sources cited by Marine Insight indicate that the BlackRock-led consortium is considering proceeding with the majority of the sale while disputes over the Panama Canal ports remain unresolved.
The strategic importance of these two ports, operated by CK Hutchison’s Panama Ports Company subsidiary, is a major concern for both China and the United States. The Panama Canal has become a focal point in ongoing trade tensions, with former US President Donald Trump having previously expressed a desire to “take back” control of the waterway, which was originally built by the US and controlled by it until 1999.
SAMR stated in a press release that it is “closely monitoring the deal” and that any attempt to proceed without an appropriate antitrust review would lead to “legal responsibility for the parties involved.”
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SAMR’s focus is on ensuring the deal adheres to China’s Anti-Monopoly Law, which seeks to prevent unfair consolidation of business power that could harm competition. This concern arose after reports suggested BlackRock’s consortium might separate the two Panama Canal ports, effectively creating two distinct transactions.
The deal involves CK Hutchison selling its 80 percent stake in 43 ports across 23 countries to the BlackRock-led consortium, receiving $19 billion in cash. Singapore’s PSA International, holding the remaining 20 percent stake, is also considering selling its share. The ports in question are located in regions such as Europe, the Middle East, and Asia but exclude CK Hutchison’s ports in Hong Kong and mainland China, according to Marine Insight.
The South China Morning Post meanwhile reported that the SAMR spokesman’s warning followed a recent report suggesting the wealthy Italian Aponte shipping family was looking to carve out the two Panama Canal ports from the deal. SAMR is “highly concerned about the relevant transaction and will review it in accordance with the law,” the Post quoted the spokesman as saying.
Lau Siu-kai, a consultant at the Chinese Association of Hong Kong and Macau Studies, told the Post that Beijing would not support any deal violating anti-monopoly laws or harming China’s national interests, especially regarding the Belt and Road Initiative, shipbuilding, and shipping sectors.
CK Hutchison has declined to comment, while the BlackRock-led consortium remains optimistic about finding a solution to the disputes over the Panama Canal ports, according to Marine Insight.
This article was prepared by AI before being checked by an editor.
