- CK Hutchison’s $14.2B Port Deal Sparks Global Reactions.
- PSA’s Sale Decision Tied to BlackRock Deal Outcome.
- Deal Excludes Hong Kong and China Ports.
Singapore-based PSA International is considering the sale of its 20% stake in CK Hutchison’s ports business, according to two sources familiar with the matter. The move comes as CK Hutchison, controlled by tycoon Li Ka-shing, advances controversial plans to divest its majority stake, reports Reuters.
CK Hutchison’s $14.2 Billion Deal Draws Global Attention
In November last year, CK Hutchison said it planned to divest its 80% interest in the global ports business to a BlackRock-led consortium. The holding has equity worth $14.2 billion and comprises two strategically important ports along the Panama Canal.
The transaction, which was welcomed by then-U.S. President Donald Trump as a reclaiming of the canal, has provoked political and regulatory tensions. Chinese state media described the transaction as an abandonment of national interests, which led to the Chinese market regulator starting an antitrust probe.
PSA’s Move Depends on Outcome of CK Hutchison’s Negotiations
Sources indicate that whether PSA goes ahead with a sale will be subject to whether CK Hutchison concludes its deal with the BlackRock-led consortium. The two parties have signed on for 145 days of exclusive negotiation. Neither CK Hutchison nor PSA has spoken publicly about PSA’s possible exit or the likely sale price.
Gigantic Port Network in Play, China Excluded
The deal under consideration involves 43 ports in 23 nations with a total enterprise value of $22.8 billion, including debt. CK Hutchison still has interests in 53 ports in total, although the deal does not include assets in Hong Kong and mainland China.
PSA Previously Explored Sale After 2006 Investment
PSA paid $4.4 billion for its 20% holding in 2006. Reuters had earlier reported that PSA had considered selling in 2022 but suspended the process when global shipping volumes declined. Aside from its holding in CK Hutchison, PSA has 70 terminals in 45 countries with key ports in Singapore and Belgium.
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Source: Reuters
