Cheung Kong Hutchison Holdings, owned by the family of Hong Kong tycoon Li Ka-shing, is seeking to sell nearly 80% of its overseas port assets, including two Panamanian ports. On the 27th, Caixin quoted China's top market regulator as saying it is closely monitoring the Cheung Kong Hutchison transaction and stressed that the transaction should not escape antitrust scrutiny.
CK Hutchison Holdings has reached an agreement in principle with BlackRock and Mediterranean Shipping Co. to sell approximately 80% of Hutchison Port Holdings' assets. The sale involves 43 ports in 23 countries, making it one of the largest port sales in recent years.
Among them, the two ports of the Panama Canal, Balboa and Cristobal, have attracted the most attention.
The Panama Canal handles about 3% of global maritime trade, with the United States and China being the largest importers and exporters. This transaction has also deepened tensions between the two countries.
Originally, the only buyer of the transaction was the American company BlackRock, but the transaction was delayed several times. On the 17th, the Wall Street Journal exclusively quoted people familiar with the matter as saying that BlackRock and Mediterranean Shipping Company, owned by the Italian shipping giant Aponte family, will jointly participate in the transaction and are considering splitting the two Panamanian ports from the original transaction, but the details of the negotiation are still ongoing.
Shortly after taking office this year, President Trump repeatedly mentioned wanting to "take back" the Panama Canal. He also repeatedly questioned China's control of the Panama Canal through Hong Kong companies and its excessive toll collection.
On the 26th, Trump once again pointed out on the social media platform Truth Social: "American warships and commercial ships should be allowed to pass through the Panama Canal and the Suez Canal for free! Without the United States, these two canals would not exist at all." He also said that he had asked Secretary of State Rubio to pay attention to this matter.
On the 27th, Caixin reported that China's State Administration for Market Regulation responded to a reporter's question about the Cheung Kong Ports transaction: "According to the Wall Street Journal report on April 16, Cheung Kong's sale of overseas ports will be split into two transactions. What is the State Administration for Market Regulation's comment on this?"
China's State Administration for Market Regulation responded: "We are highly concerned about the relevant transaction and will review it in accordance with the law. The parties to the transaction must not take any means to circumvent the review, and the concentration must not be implemented before approval is obtained. Failure to do so will result in legal liability."
Hong Kong's Ta Kung Pao has also recently published several "sharp commentary" articles, calling on Cheung Kong Hutchison Holdings to "stop playing tricks and stop immediately."
Bloomberg reported and commented that although the transaction only involved Hutchison Whampoa's overseas assets, the regulator's strong statement was also interpreted as Beijing's declaration of control over business owners in Greater China.
