CK Hutchison affirms port deal will comply with all laws and regulations
Hong Kong’s CK Hutchison reassures that its $22.8bn port sale will be fully lawful as it awaits multi-jurisdictional approvals and antitrust reviews
Li Ka-shing’s port deal draws Beijing’s scrutiny, highlighting strategic stakes in US-China rivalry
HONG Kong’s CK Hutchison, controlled by billionaire Li Ka-shing, stated on Monday that under no circumstances could its port sale deal be carried out illegally or in breach of regulations.
The company explained that, although it had planned to discuss the ports deal at its May 22 annual shareholder meeting, it opted to release a statement in response to questions from investors and the media, according to a Chinese-language statement on its official website.
The conglomerate announced on March 4 that it had agreed to sell 43 ports, including two at the Panama Canal, to a consortium led by Blackrock and Mediterranean Shipping Co in a $22.8bn transaction.
The deal has come under intense scrutiny from Beijing, with Chinese state media condemning the proposed sale as a betrayal of China’s interests, and the strategic waterway has emerged as a geopolitical flashpoint in US-China competition.
In light of these developments, both Hong Kong and mainland authorities have stepped forward to voice their opposition.
Hong Kong chief executive John Lee said on March 18 that his government was opposed to “coercion and bullying tactics” by foreign governments.
China’s Foreign Ministry spokesman Guo Jia Kun on March 27 condemned “economic coercion and bullying tactics”, aligning with Lee’s earlier remarks.
On March 28, China’s market regulator State Administration for Market Regulation launched an antitrust review of the deal, vowing to “protect fair competition and public interests”.
“Parties must not circumvent the review process by any means, or implement concentration activities without prior approval. Otherwise, they will bear legal responsibility,” a SAMR spokesperson said on April 27.
Last week, China’s Foreign Ministry spokesman Lin Jian said at a regular news briefing that recent reports that CK Hutchison has been granted permission to sell its global port assets other than those along the Panama Canal are unfounded.
The deal still awaits Chinese antitrust approval and US as well as EU reviews, faces a Panama Supreme Court challenge, and could be delayed further by political risks.
