CK Hutchison, the Hong Kong-based conglomerate controlled by billionaire Li Ka-shing, is courting a major Chinese investor to join a $23 billion global ports deal backed by BlackRock and Swiss-Italian shipping giant MSC, in a bid to ease mounting pressure from Beijing.
As reported by the Financial Times, people close to the negotiations say China’s state-owned shipping titan Cosco is in talks to join the consortium, which is acquiring 43 non-Chinese ports from CK Hutchison — including two strategic terminals on either end of the Panama Canal.
While the company stopped short of naming the potential investor in its official filing to the Hong Kong stock exchange on Monday, it confirmed that a “major strategic investor from the PRC” is being considered to join the deal. Cosco’s possible inclusion, sources say, is being designed to calm Beijing’s concerns about ceding control of key infrastructure to Western powers — particularly amid geopolitical tensions involving the U.S.
Under one version of the evolving deal, Cosco would hold a stake in 41 global ports, but be excluded from the two Panama Canal ports that have become a flashpoint for U.S.-China rivalry. Former President Donald Trump has publicly accused China of “operating the Panama Canal” and promised to “take it back” in his second-term agenda, escalating scrutiny around Chinese involvement.
CK Hutchison shares rose 1% on Monday following the announcement, while Cosco’s stock dropped 2.5%. The Hong Kong company has surged 9% over the past week on investor optimism that a compromise can be reached to salvage the deal.
Initially, the transaction would have given BlackRock’s infrastructure arm a controlling stake in the Panama ports, with the rest of CK Hutchison’s 41 global terminals — spanning Europe, Southeast Asia, and the Middle East — going to Terminal Investment Limited, majority owned by the Aponte family’s MSC.
However, the exclusive negotiation window for the original deal expired on Sunday amid strong opposition from Chinese regulators, who warned that handing global port control to Western entities could harm China’s “national interests.”
According to the Financial Times, MSC and BlackRock have already held talks with China’s antitrust authority to explore paths to regulatory approval. A source close to the deal said Cosco’s inclusion is now seen as the most viable way forward, potentially unlocking Beijing’s blessing.
CK Hutchison acknowledged the need for “adjustments” to both the consortium’s membership and the structure of the transaction to meet regulatory demands. “The group intends to allow such time as is required for such discussions to achieve the new arrangements,” the company stated.
The controversy surrounding the Panama Canal assets has become symbolic of broader geopolitical anxieties, with China aiming to maintain influence over key trade routes, while the U.S. seeks to reassert strategic control.
If Cosco joins the deal, it could mark a rare alignment between Chinese state interests and Western private capital — all in the name of keeping one of the biggest port transactions in recent memory alive.
