Free to Read: Hong Kong Chief Executive Addresses CK Hutchison’s $19 Billion Global Port Sale
John Lee says his government opposes the use of coercion and bullying tactics in trade relations
The PSA Panama International Terminal in Panama City, Panama on Feb. 25, 2025.
Hong Kong Chief Executive John Lee criticized the use of coercive tactics as he addressed CK Hutchison Holdings Ltd.’s planned sale of its controlling interest in Panama’s ports amid uncertainty about the deal.
Hong Kong billionaire Li Ka-shing’s CK Hutchison Holdings has announced plans to sell 43 ports across 23 countries, including two major ports in Panama, to a consortium led by U.S. asset manager BlackRock in a blockbuster deal worth more than $19 billion. The deal came after pressure from Donald Trump, the U.S. president.
The sale of the Panama assets, which include the Cristobal and Balboa ports located at the Atlantic and Pacific entrances to the canal, has drawn particular scrutiny. Trump has repeatedly claimed that China exerts influence over the Panama Canal — an assertion Panamanian officials have denied.
With the geopolitical stakes high and competing interests in play, CK Hutchison’s port sale remains far from a done deal, as negotiations continue, and Chinese port operators explore rival bids.
A source within China’s port industry told Caixin that the final buyer and size of the deal could still change before completion, as CK Hutchison is talking to a number of interested parties. The 145-day exclusive negotiation period with the BlackRock-TiL Consortium does not guarantee finalization, as regulatory approvals, legal reviews and shareholder consent are still pending.
Addressing the deal on Tuesday, John Lee told reporters that the government would ensure legal compliance and called for fair treatment of Hong Kong businesses by foreign governments. He said his government “opposes the abusive use of coercion, of bullying tactics, in international and economic and trade relations.”
From a financial standpoint, the deal appears highly lucrative for CK Hutchison. Under preliminary agreement terms, the ports are valued at an enterprise value of $22.8 billion. The deal would bring in more than $19 billion in cash. Goldman Sachs estimated the deal’s valuation at 14 times CK Hutchison’s expected 2024 EBITDA — well above the 8 to 11 times seen in recent private and listed port transactions.
The sale has sparked political and regulatory concerns, especially in Panama. CK Hutchison’s subsidiary, Hutchison Ports PPC, has operated the Panama ports since 1998 under a long-term concession that was renewed for 25 years in 2021. Days before the deal was announced, the Panamanian government, under pressure from Trump’s rhetoric, launched an audit of PPC.
Despite the growing scrutiny, CK Hutchison insists the sale is purely commercial. This transaction has no connection to recent political discussions about the Panama ports, said Frank Sixt, the company’s co-managing director. CK Hutchison has remained tight-lipped since its initial announcement.
Diego Aponte, the billionaire heir to Mediterranean Shipping Company (MSC) and a key figure in the BlackRock-Terminal Investment Ltd. consortium, reportedly visited CK Hutchison’s Hong Kong headquarters on March 13 for closed-door talks with its chairman Victor Li. MSC has not commented on the meeting.
Over March 14 and 15, a delegation led by Ma Hui, vice minister of the Communist Party of China’s International Department, met with Panamanian political leaders and think tanks, according to Xinhua News Agency.