The deal, valued at $22.8 billion (21.03 billion euros), involves the sale of an 80% stake in a group of port subsidiaries managing 43 ports across 23 countries, including terminals at both ends of the canal, in Balboa and Cristóbal.
The Hong Kong-based company has already stated it will not proceed against Chinese objections. The development of the deal may also be influenced by ongoing negotiations between the United States and China to end the trade war initiated by U.S. President Donald Trump, according to Japanese newspaper Nikkei Asia.
Dominic Lai, deputy managing director of the group, stated at the annual general meeting of shareholders held this week that the company will fully cooperate with Chinese authorities. Lai also emphasized that the conglomerate would never act in violation of Chinese law.
In April, Hong Kong media reported that CK Hutchison intended to separate the two Panamanian ports from the controversial deal in an attempt to avoid friction with Beijing.
Completed under U.S. auspices in 1914, the Panama Canal, which spans Central America, became a target for Trump as soon as he returned to the White House on January 20. The U.S. President accused China of controlling operations in the canal and promised to “take it back.”
Under pressure from Washington, CK Hutchison reached a preliminary agreement in March to sell the effective operating rights of the ports.
The operation drew criticism in Beijing, which announced an investigation into the deal. The absence of prior consultation with the Chinese Communist Party leadership reportedly provoked the authorities’ anger, according to Nikkei Asia.
Over the past two months, Hong Kong newspaper Ta Kung Pao, which is close to Beijing, published a series of articles urging CK Hutchison to abandon the sale.
The newspaper argued that the transaction “would harm China’s national security and interests” and began directing direct criticism at the company, particularly its real estate subsidiary, accused of making excessive profits from projects in mainland China.
The exclusive negotiation period with the American consortium lasts 145 days and ends at the end of July.
