China’s state-owned shipping giant Cosco is aiming to secure a 20-30 percent stake in a $23 billion deal involving key global port assets, including strategic holdings near the Panama Canal, as Beijing moves to reshape terms of a high-profile sale previously praised by former US President Donald Trump, according to sources cited by the Financial Times.
The exclusive negotiation window originally granted to BlackRock and the Swiss-Italian shipping group MSC expired recently, opening the door for Cosco’s assertive entry into the consortium talks. The Chinese group is reportedly demanding a significant stake in 41 of the 43 ports involved, excluding the two Panama ports that have drawn intense scrutiny from Washington.
Trump had hailed the sale in March as a “reclaiming of the Panama Canal,” highlighting that a “large American company” would acquire the crucial Panama ports and others worldwide. BlackRock’s CEO Larry Fink personally briefed Trump and US Secretary of State Marco Rubio on the deal, underscoring its strategic significance.
However, Beijing reacted sharply, labeling the deal a threat to China’s “national interests” and demanding it undergo China’s merger review process despite no mainland assets being directly involved. This intervention caused the consortium’s negotiation period to lapse on July 27 without resolution.
Following this, CK Hutchison—the Hong Kong conglomerate controlled by billionaire Li Ka-shing—indicated in a filing that discussions would continue but with a “major” Chinese investor expected to join as a significant consortium member.
Sources familiar with Beijing’s stance revealed Cosco is the sole Chinese company permitted to participate, giving it substantial leverage over BlackRock and MSC, both of whom require a Chinese partner’s backing to secure approval from China’s State Administration for Market Regulation.
Under the original terms, BlackRock was poised to gain controlling interests in the Panama ports, while MSC would maintain majority stakes in other global ports across Europe, Southeast Asia, and the Middle East. But BlackRock’s position weakened after Beijing opposed the deal, insiders said.
French shipping company CMA CGM has also shown public interest, but no other major shipping groups aside from Cosco are reportedly in active talks to join the consortium.
“It has become all about how to make Cosco happy,” one source told the Financial Times, highlighting Cosco’s critical role in securing Beijing’s approval.
BlackRock declined to comment on the ongoing negotiations. Representatives from China’s foreign ministry, the State Council Information Office, CK Hutchison, Cosco, and MSC did not respond to requests for comment.
