Hong Kong-based CK Hutchison has agreed to sell its 80% stake in Hutchison Ports Holding to a BlackRock-TiL consortium in a $22.8 billion deal.
The acquisition will strengthen Mediterranean Shipping Company (MSC)’s position as a leading global container terminal operator.
According to industry analyst Drewry, this is the largest transaction in the history of the container terminal sector.
As part of the deal, Hutchison Ports will also sell its 90% stake in Panama Ports Company, which operates the Balboa and Cristobal ports on either side of the Panama Canal.
The sale comes amid growing political scrutiny over Chinese involvement in key maritime infrastructure, particularly in Panama.
U.S. President Donald Trump has raised concerns about Chinese influence on Panama Canal operations.
In a recent address to Congress, he referenced the transaction, stating that his administration would work to reclaim influence over the canal.
He pointed to BlackRock’s involvement in the deal as a step in that direction.
Hutchison Ports currently operates 43 container terminals outside China and Hong Kong, spanning regions such as Australia and the UAE, with a total capacity of over 73 million TEU and a throughput of 47 million TEU in 2023.
MSC, through its 70% stake in Terminal Investment Limited (TiL) and its ownership of Africa Global Logistics (AGL) and several Italian terminals, handled more than 70 million TEU in 2023.
Drewry’s analysis suggests that this acquisition will place MSC at the top of the global terminal operator rankings.
The deal is expected to face regulatory scrutiny in several key markets, including Panama, where TiL already has significant interests, Rotterdam, where the acquisition could affect competition in Northwest Europe, and
Spain, where both companies operate major terminals.
The transaction builds on MSC’s existing relationship with Global Infrastructure Partners (GIP), now owned by BlackRock.
GIP, which initially acquired a 35% stake in TiL in 2013, has played a key role in expanding MSC’s terminal network.
While the acquisition would provide MSC with additional capacity in critical markets, analysts expect competition authorities to closely examine its potential impact before granting final approval.
Copyright Ships & Ports Ltd. Permission to use quotations from this article is granted subject to appropriate credit given to www.shipsandports.com.ng as the source.
