High-Stakes Port Deal: CK Hutchison Faces Antitrust Review Amid China-U.S. Tensions

CK Hutchison's planned sale of two port operations near the Panama Canal to a BlackRock-led group faces scrutiny from China's market regulator. The antitrust review, initiated as the deal comes under heavy political pressure, reflects the broader geopolitical tensions influencing Chinese business divestments involving U.S. buyers.

CK Hutchison's anticipated sale of its port operations near the Panama Canal to a consortium led by BlackRock will not proceed as expected next week. Individuals with insider information cite unspecified 'obvious reasons' for the delay, though negotiations remain ongoing. The Chinese market regulator's antitrust review adds a layer of complexity to the high-profile transaction.

Owned by renowned tycoon Li Ka-shing, CK Hutchison's $22.8 billion global ports deal, initially slated for documentation signing by April 2, is now under the microscope as China expresses unease over the prospective U.S. control of strategic assets. The deal is strategically significant as it covers 43 ports across 23 countries.

Responding negatively, Beijing aims to protect its national interests, viewing the transaction as dual-purpose collaboration aligning with U.S. strategies that jeopardize Chinese positions. The controversy highlights the geopolitical friction influencing business decisions. Observers suggest intensified scrutiny in similar future Chinese divestments to American entities.

(With inputs from agencies.)