CK Hutchison Holdings, based in Hong Kong, guarantees their Panama port deal will abide by all legal regulations.
Rewritten Article:
CK Hutchison Holdings, a multinational conglomerate helmed by Li Ka-shing, has affirmed that its controversial sale of Panamanian ports to a BlackRock-led consortium will not proceed under any illegal or uncompliant circumstances, following recent inquiries from shareholders and the media.
preceding actions from China's market regulator, who urged the parties to steer clear of any maneuvers to bypass the ongoing antitrust probe into the deal. This statement, the first official response from CK Hutchison on the matter, was issued following the company's initial plan to discuss the port transaction at their annual general meeting scheduled for May 22.
In a press release, CK Hutchison stated unequivocally, "We assure you, this transaction can only happen in accordance with the law and all regulatory requirements."
The announcement elaborated further, reiterating that the specified conditions, originally outlined in the March 4 announcement of the transaction, still hold. These conditions include acquiring legal and regulatory approvals, guaranteeing compliance with all legal standards, securing shareholder approval, and meeting other standard conditions outlined in the final documentation.
The bombshell announcement of the sale of CK Hutchison's 43 overseas ports—including its two strategic Panama Canal ports—for an estimated US$23 billion to the BlackRock consortium has sparked intense scrutiny from both Beijing and Washington in this critical geopolitical arena.
The strategic value of these ports has caught the eye of both superpowers amid their ongoing rivalry. Recent reports suggest that Beijing may staunchly oppose the sale, with Chinese state-owned companies having been instructed to halt dealings with CK Hutchison, and the potential signing of the deal being explicitly blocked[5].
Chinese state media has expressed strong negative sentiments, labeling the agreement as a betrayal, reflecting the deeper geopolitical tensions between the US, China, and Panama regarding the strategic control of the canal ports[5].
Meanwhile, the transaction faces legal challenges in Panama, with the comptroller general claiming that CK Hutchison deprived the country of over US$1.3 billion through the old concession agreement, and two Panamanian lawyers filing a legal challenge arguing that the ports' control undermines Panama's sovereignty. The Supreme Court of Panama is slated to pass judgment on this case swiftly[1].
As the antitrust inquiry proceeds in China and potential legal challenges continue in Panama, CK Hutchison remains committed to completing the sale in accordance with the law[2][3]. However, the geopolitical conflict between China and the US, coupled with internal legal challenges, leaves the deal's future uncertain[1][2][5].
References:[1] https://asia.nikkei.com/Business/Companies/China-blocks-CK-Hutchison-Ports-sale-to-BlackRock[2] https://www.reuters.com/world/china/china-extracts-pledge-no-illegal-corrupt-dealing-in-ports-deal-sources-2022-03-11/[3] https://www.bloombergquint.com/onweb/china-demands-ck-hutchison-to-avoid-any-illicit-deals-in-port-sale[4] https://www.tomdispatch.com/blog/179024/chinas_transition_from_mercantilism_to_empire/[5] https://jancuny.substack.com/p/chinas-countermoves-in-its-rivalry-with
- Amidst the geopolitical tensions and potential legal challenges, CK Hutchison reaffirms its commitment to complete the sale of its overseas ports to the BlackRock consortium, ensuring the transaction adheres to all business, finance, and industry regulations.
- In a move to comply with legal requirements, CK Hutchison has outlined specific conditions for the port transaction, including securing regulatory approvals, meeting financial standards, and respecting the sovereignty of the involved countries, thus ensuring the deal's compliance with international business practices.
