Splash247: CK Hutchison ports sale unlikely to be concluded this year

The big ports deal involving CK Hutchison has hit choppy waters. The Hong Kong-based conglomerate confirmed yesterday that its planned sale of 43 global ports for just shy of $23bn is unlikely to be completed this year as previously hoped.

The deadline for exclusive talks between CK Hutchison and suitors BlackRock and Mediterranean Shipping Co (MSC) has passed with no deal in sight. 

Geopolitical headwinds and regulatory hurdles are slowing the deal. Chinese authorities are demanding a national security review—even though no Chinese assets are included. As a result, CK Hutchison is negotiating to bring China’s state-run shipping giant COSCO into the consortium to help ease scrutiny and secure Beijing’s green light.

Despite the delays, CK Hutchison remains cautiously optimistic. 

“With a deal of this size and complexity, closing…would not in any case occur this year even if binding [new] arrangements are agreed this year,” Frank Sixt, CK Hutchison co-managing director, told analysts on Thursday. “There is a reasonable chance that those discussions will lead to a deal that is good for all of the parties. It is taking much longer than we had expected,” Sixt added.