(Aug 27): Li Ka-shing’s CK Hutchison Holdings Ltd expects to sell what remains of its global ports portfolio for its original US$22.8 billion (RM91.82 billion) value, even after losing two Panama terminals that had been included, according to people familiar with the matter. 

The proposed sale of 43 global ports, to a buyer consortium that includes US investment firm BlackRock Inc, was expected to net CK Hutchison more than US$19 billion in cash when it was first announced in March 2025. That expectation hasn’t changed even with the Panama Canal facilities excluded from the package, the people said, asking not to be identified discussing private deliberations.  

The talks are ongoing and final details including pricing could still change given the complexity of the deal, they added. 

Panama invalidated CK Hutchison’s contract to operate the ports earlier this year following pressure from US President Donald Trump. The Hong Kong conglomerate and its unit Panama Ports Co have since launched separate international arbitration claims against the decision, seeking damages of at least US$3.5 billion. Any compensation from those cases is expected to be shared between CK Hutchison and the buyers, one of the people said. 

The Panama facilities had accounted for only about 4% of the portfolio’s original price. The price of the remaining 41 ports is seen to have risen enough to offset their loss, one of the people said, because buyers see them as logistical assets generating stable income in a time of increasing geopolitical conflict. 

Company representatives, bankers and lawyers are still meeting weekly to negotiate over deal terms, the people familiar said. The sale has become a lightning rod in the US-China rivalry, and tensions have been especially high over the Panama terminals, with Washington vowing to protect its Latin American interests as Beijing expands its influence in the region.

Hopes for a political breakthrough have been renewed as Chinese leader Xi Jinping plans to meet Trump during his September trip to the US, though the parties remain cautious given a similar high-level May meeting between the two failed to yield results, according to the people.

A spokesperson for BlackRock declined to comment. CK Hutchison and members of the buyer consortium including China Cosco Shipping Corp, China Merchants Bank Co and Italian billionaire Gianluigi Aponte’s MSC Mediterranean Shipping Co didn’t respond to requests for comment. 

The deal hit roadblocks soon after it was announced, with CK Hutchison drawing Beijing’s ire for agreeing to sell ports in strategic global locations to a consortium backed by BlackRock. To gain China’s approval, the group invited state-owned companies to join the buyers, including Cosco. 

The discussions have remained mired down as the parties seek to navigate regulatory hurdles across the countries where the ports are located — and reconcile competing demands from prospective buyers. 

Discussions have focused on a proposal to split the ports into different ownership structures, Bloomberg has reported. That could give the Chinese buyers bigger stakes and greater control in some locations, while other consortium members take the lead elsewhere.

Panama’s forced takeover of the two terminals added to uncertainty around the deal, with Beijing warning the country could pay a “heavy price” for the move. Parties involved in the sale are likely to seek positive signals from both China and the US before settling the transaction’s final terms, Bloomberg has reported. 

There are signs, however, that tensions between Beijing and Panama may be easing. They are moving toward renewing an agreement that gives Panama-flagged vessels favourable treatment at Chinese ports, local media reported in August, citing China’s ambassador to the country. 

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