China’s state-owned shipping giant COSCO aims to secure at least a 20%-30% stake in a $23 billion ports deal involving strategic assets in the Panama Canal, as Beijing moves to renegotiate the terms of a sale previously praised by U.S. President Donald Trump.
The Chinese group is demanding a large stake after an exclusive negotiating window for BlackRock (BLK) and Swiss-Italian shipping group MSC expired, the Financial Times reported on Friday.
The two companies were originally set to form a consortium to buy 43 ports, including two in Panama, from Hong Kong billionaire Li Ka-shing’s CK Hutchison.
Under one of the options being discussed, Cosco would receive a stake in 41 ports, but not the two Panama ports that Trump has alleged are subject to Chinese influence, the report said.
Two people familiar with Beijing’s view said Cosco was the only Chinese company permitted to be involved in the talks, giving it immense negotiating power over BlackRock and MSC because they would need a Chinese partner to get approval from the State Administration for Market Regulation.
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Source: seekingalpha
