China to review BlackRock's deal to buy Panama Canal ports - FT
Kyiv • UNN
The Chinese regulator will review the deal between CK Hutchison and the BlackRock consortium regarding ports in Panama. Beijing fears the impact of the deal on competition in shipping and trade.
China's antitrust regulator has announced it will review the agreement between Hong Kong-based CK Hutchison and a BlackRock-led consortium for the sale of two ports on the Panama Canal. This was reported by the Financial Times, writes UNN.
Details
According to media reports, this deal is part of a larger $22.8 billion transaction involving 43 ports worldwide. The move comes amid criticism from China, which has expressed concerns about the influence of American investors on strategically important infrastructure.
China's State Administration for Market Regulation (SAMR) published comments emphasizing that it is closely monitoring this deal and will review it from the perspective of protecting fair competition. Beijing expressed concern that the deal could affect the domestic shipping market and international cargo trade in China.
It is not yet clear whether Chinese regulators intend to review the entire deal or limit their focus to the ports in Panama.
According to two sources familiar with the situation, the two Panamanian ports account for only a small portion of the deal's value, which includes ports in Europe, Southeast Asia, and the Middle East.
However, as known from sources, SAMR is collecting information and preparing to launch an investigation. The regulator is assessing whether the sale will violate rules or restrict competition in China's domestic shipping and international cargo trade markets.
According to two people familiar with the matter, SAMR consulted at least one industry expert to work on the case. The expert suggested that the regulator impose conditions on the BlackRock-led consortium's purchase to ensure that the deal does not weaken the competitiveness of Chinese shipping companies and cargo owners, the people added.
The official signing of the agreement on the Panamanian ports is expected on April 2. However, this may now be delayed, sources say.
However, negotiations between the BlackRock-led group and CK Hutchison for the deal to cross the line are ongoing. Both sides are preparing for a potential SAMR review.