Geneva-based Terminal Investment Ltd. (TiL), controlled by the family of Italian billionaire Gianluigi Aponte, is set to become the primary investor in a transaction to acquire 43 ports from Hong Kong tycoon Li Ka-shing's CK Hutchison Holdings Ltd, according to Bloomberg.
The deal, valued at over $19 billion, has faced opposition from China due to the involvement of US firm BlackRock Inc.
Under the proposed structure, TiL will assume full ownership of all ports except for two located in Panama.
These two Panamanian ports will be majority-owned (51%) by BlackRock Inc.’s Global Infrastructure Partners unit, with TiL holding the remaining 49%. The Panamanian facilities represent approximately 4% of the total deal value.
The sale is currently undergoing due diligence, tax, and accounting checks, and requires regulatory approval. The buyers have committed to maintaining the existing management and operational rules of the ports, which are primarily for common users and open to all shipping lines without discrimination. While the deal progresses, the final structure and ownership of the consortium remain subject to potential changes.
This transaction has become geopolitically sensitive, drawing criticism from China and scrutiny from Panama. Despite pressure from Beijing, CK Hutchison intends to proceed with the sale.
Panama's top auditor has accused CK Hutchison of wrongdoing, allegations the company denies.
Following the report, shares of CK Hutchison experienced an increase of up to 3.8% in Hong Kong. Year-to-date, the stock has declined by nearly 1%.
The acquisition, initially announced on March 4th as a BlackRock-TiL consortium, was awarded to the Aponte-backed group partly due to their long-standing relationship with Li Ka-shing. The initial target for finalizing the Panama portion of the sale by April 2nd was missed. CK Hutchison will retain its port assets in Hong Kong and mainland China, which contribute about 12% to the company's total revenue.
Founded in 1988, BlackRock is an American multinational investment company and the world's largest asset manager with $11.5 trillion in assets under management as of 2024.
CK Hutchison Holdings Ltd. operates in over 50 countries with four core businesses: ports and related services, retail, infrastructure, and telecommunications.
MSC Mediterranean Shipping Co SA is a private company headquartered in Geneva, Switzerland, since 1978.
TiL is a container terminal investor with interests in 70 operating container terminals and one under development across 31 countries in Europe, Asia, North America, South America, and West Africa. It is majority-owned by MSC. BlackRock and Singaporean state investor GIC Pte hold a combined minority stake of approximately 30% in TiL.
