Hong Kong’s CK Hutchison is considering selling its global port facilities to U.S.-based investor BlackRock and Mediterranean Shipping Company. However, China may block this sale unless shipping company Cosco is also included, according to a Wall Street Journal report citing anonymous sources.
In March, Hutchison announced its intention to sell its 80% stake in port terminals through its subsidiary Hutchison Port Holdings. The sale will involve 43 ports across 23 countries and is expected to generate $22.8 billion in revenue.
The company is controlled by billionaire Li Ka-shing. The prospective sale includes terminals near the Panama Canal, a strategic priority for the United States as highlighted by President Donald Trump.
Based in Geneva, MSC is the world’s largest container shipping line, operating over 800 ships with a capacity of 5.6 million twenty-foot equivalent units (TEUs).
The report revealed that BlackRock, MSC, and Hutchison are open to including a stake in Cosco in the sale. However, Hutchison, BlackRock, and MSC have yet to respond to requests for comment. Messages left for the White House and the Chinese media office were not immediately returned.
Furthermore, the report indicated that an agreement is not anticipated before the July 27 deadline for exclusive talks between BlackRock, MSC, and Hutchison.
