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A BlackRock-backed $23bn acquisition of dozens of global ports, including key assets in the Panama Canal, is at risk of collapsing after China’s state-owned shipping giant Cosco demanded a majority stake in the deal.
Three people familiar with the talks said BlackRock and Mediterranean Shipping Company were considering walking away from a deal to buy the ports from CK Hutchison if Cosco were to insist on getting a majority stake.
Hong Kong-based CK Hutchison announced in March that it would sell 43 ports in 23 countries, including two on the Panama Canal, to a consortium including BlackRock and a subsidiary of MSC, the Swiss-Italian shipping group.
The deal drew praise from US President Donald Trump, who had vowed to “take back” the canal, and opprobrium in Beijing, which said the deal was a threat to China’s national interests.
Since then, Chinese officials have quietly worked to reshape the deal, applying pressure by demanding it undergo Beijing’s merger review process even though no mainland assets are involved.
This summer Cosco was invited to join BlackRock and MSC as a partner in the transaction in a bid to help the deal gain approval from Chinese regulators.
The talks initially explored handing Cosco a 20 to 30 per cent stake in CK Hutchison’s 41 global ports, excluding the two in Panama that Trump has alleged are subject to Chinese influence. Other ports in the deal include the UK’s Thamesport and Rotterdam, one of Europe’s largest ports.
But the state-owned Chinese group has demanded a majority stake in the consortium, said the people familiar with the talks. They added that it was unclear if Cosco’s demand was a negotiating position or a requirement from Beijing. The Wall Street Journal first reported on Cosco’s demand for a majority stake.
People familiar with the process said talks were ongoing and said any successful deal would ultimately hinge on US-China relations improving in 2026.
The initial deal terms from March would have given BlackRock a controlling stake in the ports at both ends of the Panama Canal, while Aponte family-controlled MSC would become the majority owner of the rest of CK Hutchison’s 41 non-Chinese ports including in south-east Asia, Europe and the Middle East.
CK Hutchison Holdings’ share price in Hong Kong rose 33 per cent in the two days after the transaction was announced in March.
BlackRock declined to comment. CK Hutchison, Cosco, MSC and China’s foreign ministry did not respond to requests for comment.
Additional contributions by Cheng Leng in Beijing and Jamie John in London
