China’s market regulator said all parties involved in CK Hutchison’s sale of dozens of ports should not evade a review that it’s conducting and the deal shouldn’t be implemented without its approval

China’s market regulator said all parties involved in CK Hutchison’s sale of dozens of ports should not evade a review that it’s conducting and the deal shouldn’t be implemented without its approval

Singapore’s PSA International is exploring the sale of its 20% stake in CK Hutchison’s ports business, according to two people with knowledge of the matter. This decision comes as CK Hutchison, led by tycoon Li Ka-shing, is in talks to sell its 80% holding in the business to a BlackRock-led consortium. The sale includes two ports along the strategically important Panama Canal, with an equity value of $14.2 billion [1].

The deal between CK Hutchison and the BlackRock consortium encompasses 43 ports in 23 countries, with an enterprise value of $22.8 billion. The business does not include ports in Hong Kong and mainland China. PSA bought its 20% stake for $4.4 billion in 2006 [1].

U.S. President Donald Trump hailed the deal as a “reclaiming” of the Panama Canal, while Chinese state media criticized it as a betrayal of China’s interests. The Chinese market regulator has launched an antitrust review, emphasizing that all parties involved should not evade the review and that the deal should not be implemented without its approval [1].

PSA, wholly owned by Singapore’s state investor Temasek, is considering the sale based on CK Hutchison’s transaction. The two sources indicated that the outcome depends on whether CK Hutchison proceeds with the transaction. CK Hutchison and the BlackRock-led consortium have agreed to exclusive talks for 145 days [1].

The potential sale price for PSA’s stake remains unspecified due to the sensitivity of the issue. Both PSA and CK Hutchison declined to comment on the matter [1].

Outside of its stake in CK Hutchison, PSA operates 70 terminals in 45 countries, including its two flagship ports in Singapore and Belgium [1].

References:
[1] https://gcaptain.com/singapores-psa-weighs-selling-minority-stake-in-ck-hutchisons-ports-business/