CK Hutchison has transferred the management of the ports of Cristobal and Balboa, located at the entrances of the Panama Canal, to an American consortium led by asset manager BlackRock.
The Hong Kong-based conglomerate CK Hutchison is under growing pressure from Beijing, accused of betraying Chinese interests after selling two ports near the Panama Canal to an American consortium.
On Saturday, for the second time in three days, Chinese authorities republished strong criticism from newspapers regarding CK Hutchison’s decision, made about ten days ago, to sell two ports near the Panama Canal, amid threats from U.S. President Donald Trump.
CK Hutchison had managed the Cristobal and Balboa ports through one of its subsidiaries since 1997. The company has now sold this management to an American consortium led by BlackRock, which plans to invest nearly $19 billion. Under the agreement in principle, the consortium is set to acquire 90% of Hutchison Ports PPC and 80% of a subsidiary that owns ports in other countries.
« Choosing Sides »
On Saturday, Beijing’s authority responsible for Hong Kong affairs republished an editorial titled « Great Entrepreneurs Have Always Been Outstanding Patriots. » Originally published in Hong Kong’s Ta Kung Pao newspaper—controlled by a subsidiary of the Liaison Office—the article claims that many Chinese people are wondering « how such important ports could be handed over so easily to ill-intentioned American forces. »
« If entrepreneurs fail to see the true nature of American politicians and choose to dance with them, they may be able to strike a mega-deal and get rich for a while, but in the long run, they will have no future and will be despised by history, » the article warns.
This same editorial was republished in full on Saturday by Beijing’s Liaison Office in Hong Kong.
On Friday, CK Hutchison’s stock price had dropped more than 6% after the Liaison Office republished an earlier editorial urging the conglomerate to « choose its side. »
This earlier article had been published on Thursday in Ta Kung Pao’s opinion section. However, Saturday’s new editorial appeared prominently on page 3 of the newspaper and was even announced on the front page, signaling escalating criticism.
On Sunday morning, the Ta Kung Pao website published three additional opinion pieces, all criticizing the sale.
At 11:00 a.m. local time (03:00 GMT), CK Hutchison had not yet responded to AFP’s requests for comment.
« I want to emphasize that this transaction is purely commercial in nature and is entirely unrelated to recent media reports on political matters concerning the ports in Panama, » said Franck Sixt, a CK Hutchison executive, in early March.
CK Hutchison is one of Hong Kong’s largest conglomerates, covering various industries such as financial services, retail, infrastructure, telecommunications, port operations, and logistics, among others.
Source: le figaro
