A view of the Balboa Port is pictured after Hong Kong's CK Hutchison agreed to sell its interests in a key Panama Canal port operator, Panama City, Panama, March 4, 2025.
The proposed deal involves the sale of an 80% stake in Hutchison Port Holdings (HPH), which operates 43 ports with 199 berths across 23 countries, valued at $22.8 billion. This includes a 90% interest in Panama Ports Company, which manages the Balboa and Cristobal ports along the Panama Canal. The transaction excludes HPH’s interests in Hong Kong, Shenzhen, and other mainland China ports. Unlike its usual practice, CK Hutchison did not provide briefings to analysts or media on its 2024 earnings, which were released after the sale plan was made public.
On July 28, 2025, CK Hutchison announced ongoing discussions with the BlackRock-TiL consortium to include a "major strategic investor" from mainland China, following the expiration of exclusive negotiations. The company stated: “Changes would be necessary to secure regulatory approval in relevant jurisdictions and that it would allow as much time as needed to achieve that.” Sources indicate that COSCO (1199.HK), a leading global marine transportation firm, is in talks to join the consortium, seeking a significant stake, though other members prefer it to remain a minority partner. The inclusion of a Chinese investor is expected to address regulatory concerns and facilitate approvals.
The Panama Canal ports are significant, handling over 40% of U.S. container traffic, valued at $270 billion annually. The transaction requires regulatory approvals, including from the Panamanian government for the Panama ports, with definitive documentation expected by April 2, 2025. Ahead of the results, UBS projects a 6% increase in CK Hutchison’s underlying profit for the first half of 2025, driven by growth in its ports and retail sectors and a weaker U.S. dollar, though one-off losses, such as those from the 3UK merger, may impact net profit. Morgan Stanley recently rated CK Hutchison “overweight,” citing its strategic initiatives, attractive valuation, and robust financial position.
