CK Hutchison to Divest Stake in Panama Ports Amid U.S. Pressure

CK Hutchison plans to sell its stake in the Panama Ports Company, responding to U.S. pressure regarding Chinese influence over the Panama Canal. The sale excludes interests in its Hong Kong operations and involves negotiations with a consortium that includes BlackRock Inc. for a period of 145 days.

CK Hutchison is set to divest its stake in the Panama Ports Company, which manages the ports of Balboa and Cristobal, in response to pressure from U.S. President Donald Trump regarding Chinese involvement in the Panama Canal. The company has held operations at these crucial ports for over twenty years, amidst rampant U.S., Taiwanese, and Singaporean interests in other canal facilities.

The sale does not pertain to Hutchison Port Holdings Trust, encompassing operations in Hong Kong and Shenzhen, nor other ports situated in Mainland China. The consortium negotiating the sale includes BlackRock Inc., Global Infrastructure Partners, and Terminal Investment. CK Hutchison stated that discussions will be held exclusively over the next 145 days.

In summary, CK Hutchison’s decision to sell its Panama ports stake reflects geopolitical pressures surrounding Chinese influence in the region. This divestment marks a significant shift in ownership while maintaining existing operations under Hutchison’s broader portfolio, which remains unaffected by this sale.

Original Source: m.economictimes.com