According to Reuters, the deal for a consortium led by BlackRock and MSC to acquire the majority of CK Hutchison’s global port business is currently facing obstacles in Europe. An informed source revealed on Thursday that EU antitrust regulators are preparing to launch an in-depth investigation into the Spanish portion of the transaction.
It is understood that in this Spanish portion of the deal, Terminal Investment Limited Holding (TiL), a subsidiary of Mediterranean Shipping Company (MSC), will jointly acquire with BlackRock the controlling stake in CK Hutchison’s terminal at the Port of Barcelona. This terminal has the capability to simultaneously berth multiple ultra-large container ships and is equipped with an eight-track railway facility. It is the largest railway hub on the Mediterranean coast of the EU, capable of serving the entire Southern European hinterland.
It is worth noting that TiL already operates a terminal at another Spanish port, the Port of Valencia.
The source stated that the European Commission, as the EU’s competition enforcement authority, is expected to initiate a full-scale investigation after its preliminary review concludes on December 10. EU full-scale investigations typically last about four months or longer and can lead to the involved companies proposing concessions, including divesting parts of their assets, to address competition concerns and secure regulatory approval.
If a full investigation is launched, regulators may require BlackRock and MSC to make concessions or commitments in exchange for approval of this Spanish portion of the deal.
Since the 1990s, Li Ka-shing has established a deep foundation in the global port sector through Hutchison Port Holdings. Information shows that CK Hutchison’s Hutchison Ports has 30,000 employees, operating 53 ports and terminals in 24 countries. A distribution map on the Hutchison Ports website shows it operates 21 ports in Asia and Australia; besides 10 in Mainland China and Hong Kong, others are located in Indonesia, Pakistan, South Korea, Vietnam, etc. The company operates 13 ports in 7 European countries, 12 ports in 5 countries in the Middle East and North Africa, and 7 ports in 3 countries in the Americas.
It is currently unclear whether CK Hutchison’s port interests in other European parts of this global acquisition, such as in Belgium, Poland, and the Netherlands, will ultimately also face scrutiny.
On the night of March 4 this year, CK Hutchison announced that it had reached a preliminary agreement in principle on the basic terms of the transaction with a consortium led by BlackRock. CK Hutchison intends to sell its entire holdings in Hutchison Port Holdings S.a.r.l. (HPHS) and Hutchison Port Group Holdings Limited (HPGHL) to this consortium, which together control 80% of the global interests of Hutchison Ports Group. The target assets involved in this transaction cover 43 ports in 23 countries across Asia, Europe, and the Americas. Simultaneously, CK Hutchison will also sell a 90% stake in Panama Ports Company (PPC) to the BlackRock consortium. The total asset value of the overall transaction is nearly $22.8 billion, expected to generate cash proceeds exceeding $19 billion.
However, the deal negotiations have not been smooth from the start. As early as April 2, the first key agreement deadline was missed. Subsequently, as China’s State Administration for Market Regulation and the Ministry of Foreign Affairs intensively voiced their positions, clearly emphasizing that the transaction must comply with regulatory reviews and must not harm national interests, the deal was quickly placed under the dual magnifying glass of politics and law.
Just as the deal reached an impasse, in early June, news emerged that COSCO Shipping Group was interested in joining the acquisition consortium. According to Reuters, China COSCO Shipping Group is in talks with an international consortium to participate in the acquisition of the global port assets owned by Hong Kong tycoon Li Ka-shing’s CK Hutchison Holdings. Subsequently, CMA CGM, COSCO’s partner in the “Ocean Alliance,” was also reported to be interested in joining the acquisition consortium.
On August 14, Frank John Sixt, Co-Managing Director and Group Finance Director of CK Hutchison Group, stated at an analyst meeting that the Panama port asset transaction is large-scale, involving multiple countries and regulatory bodies, and the group would absolutely not proceed with any transaction before obtaining approval from all relevant regulators. He also noted that the transaction has now entered a new phase, including the previously announced intention to invite major strategic investors from Mainland China to join the consortium.
In the first half of this year, CK Hutchison’s ports and related services segment achieved double-digit growth in both revenue and profit, driven by growth in throughput, a surge in storage income, and contributions from associated companies.
The latest financial report shows that in the first half of 2025, CK Hutchison Group’s ports and related services business recorded revenue of HKD 23.597 billion, an increase of 9% compared to the first half of 2024. This was mainly driven by a 4% increase in throughput at Yantian Port, Shanghai Port, and container terminals in Asia and the Middle East; a significant 27% increase in storage income from ports in Mexico and Europe; and strong performance from an associated company in the shipping business. Consequently, EBITDA was HKD 8.719 billion, and EBIT was HKD 6.58 billion, up 10% and 12% respectively compared to the first half of the year, primarily benefiting from increased revenue driven by strong performance and effective cost management measures.
