According to a report from the Financial Times on Tuesday, BlackRock and MSC, two major companies, are considering pulling out of a deal to acquire ports including those in Panama. The proposed acquisitions involve over 40 ports globally under the ownership of Hong Kong tycoon Li Ka-shing’s company CK Hutchison, with a total transaction value of $23 billion.
The latest development indicates that due to Beijing’s request for control over the deal, attempting to give China’s state-run shipping company, Cosco, more than half of the shares, the transaction is now at risk of falling apart. Sources revealed that if Cosco insists on obtaining majority control, BlackRock and MSC are contemplating abandoning the port acquisitions from CK Hutchison and withdrawing from negotiations.
CK Hutchison announced in March that it would sell over 40 ports globally to a consortium led by BlackRock. This deal had received praise from U.S. President Trump, who had vowed to “take back” the Panama Canal. However, Beijing expressed dissatisfaction with the deal, secretly opposing it and claiming it threatened national interests, pressuring for a merger review even though the deal does not involve any assets in mainland China.
In July, the Wall Street Journal cited insiders reporting that Beijing was pushing for Cosco to enter the transaction, requiring this direct Chinese state-owned company to become an equal shareholder alongside BlackRock and MSC.
Additionally, China threatened to block a deal that aimed to transfer dozens of port assets to Western investors if Cosco failed to gain shares. Insiders stated that BlackRock, MSC, and CK Hutchison were willing to accept Cosco’s investment and provide equal shares.
The Wall Street Journal reported on December 16 that China’s demands escalated, requiring majority control and veto power over port operations, a move deemed unacceptable by all parties, leading to a deadlock in negotiations. The White House has also stated that they will not accept China’s demands.
According to the Financial Times on Tuesday, the initially discussed terms involved Cosco holding about 20% to 30% of the shares in the aforementioned ports, excluding the two ports in Panama. However, Cosco demanded a majority stake in the deal.
Insiders revealed that negotiations are ongoing, and any final agreement will depend on the improvement of U.S.-China relations in 2026.
As per the preliminary terms from March, BlackRock was set to acquire control over the ports at both ends of the Panama Canal, while MSC would become a major shareholder in CK Hutchison’s other 41 non-China ports (spanning Southeast Asia, Europe, and the Middle East).
BlackRock declined to comment on the reports, and CK Hutchison, Cosco, and MSC have not responded. The Chinese Ministry of Foreign Affairs stated that they are not aware of the matter.