Hong Kong tycoon Li Ka-shing’s Cheung Kong Hutchison Holdings (referred to as Cheung Kong) has ruled out the possibility of completing the global port transactions, including the Panama ports, within this year.
Cheung Kong planned to sell 43 ports globally for $22.8 billion to a consortium led by the U.S. Blackrock, but after intervention from the CCP, the deal has become tricky. Beijing has requested Chinese state-owned enterprises like China Ocean Shipping Company (COSCO) to participate in the transaction and hold a certain share.
On Thursday (August 14), Cheung Kong released its mid-term results. Cheung Kong’s Co-Managing Director Frank Sixt stated during an analyst briefing that even if they manage to reach a binding agreement ahead of schedule, the transaction may not be completed this year.
The deal involves 43 ports under Cheung Kong, including two ports at the strategically important Panama Canal. Upon completion of the transaction, Cheung Kong stands to receive over $19 billion in cash.
“Our deal is in a new stage, as we have mentioned before, which includes negotiations with an important Chinese strategic investor,” said Sixt. “I believe these negotiations are likely to lead to an agreement that benefits all parties (including ourselves), most importantly, an agreement that will receive approval from all relevant departments.”
Bloomberg reported that the port sale transaction by Cheung Kong is full of geopolitical risks and uncertainties, symbolizing the competition between China and the U.S. President Trump has praised the deal as a victory in capturing back control of the Panama waterway, which Beijing strongly opposes, seeing it as Cheung Kong succumbing to U.S. pressure.
Cheung Kong missed the opportunity to conduct exclusive negotiations with the acquisition consortium by the end of July and sign the final agreement before the window period expired.
According to sources, COSCO is participating in the port transaction negotiations and wishes to secure a strong position in the deal as a condition for joining the acquisition consortium. The consortium also includes the terminal investment company owned by Italian billionaire Gianluigi Aponte.
Sixt emphasized that negotiations may take longer than expected, but due to the good performance of port operations this year, the group remains optimistic about the transaction prospects.
In the first half of 2025, Cheung Kong saw a 9% increase in port and related service business revenue, and a 10% growth in earnings before interest, taxes, depreciation, and amortization (EBITDA), primarily driven by throughput and warehousing income growth in regions such as mainland China, Asia, the Middle East, Mexico, and Europe.