High-Stakes Panama Port Deal in Limbo Amidst Sino-U.S. Tensions

Hong Kong's CK Hutchison postpones a deal to sell two port operations near the Panama Canal to a BlackRock-led consortium due to pressure from Beijing. China's market regulator is set to conduct an antitrust review, while negotiations continue amidst political scrutiny and international strategic implications.

Hong Kong's CK Hutchison is holding off on signing an anticipated deal to sell two of its port operations near the Panama Canal to a consortium led by BlackRock, according to sources familiar with the matter. This delay comes amid mounting pressure from Beijing, which has expressed concerns over the agreement.

The Chinese market regulator announced it will launch an antitrust review of the Panama port deal, aiming to protect fair competition and public interest. The telecom-to-retail conglomerate, controlled by billionaire Li Ka-shing, had initially reached an agreement to divest assets worth $22.8 billion globally, including those near the strategically crucial Panama Canal.

Despite the delay in signing definitive documentation, negotiations between CK Hutchison and the BlackRock-led group remain active. The deal is seen as controversial, with Beijing criticizing the sale, while U.S. President Donald Trump expressed support, underscoring the geopolitical significance of the transaction.

(With inputs from agencies.)