Overview

• The exclusive negotiation period for CK Hutchison’s planned sale of stakes in 43 ports lapsed on July 27 without finalizing an agreement.
• The $23 billion transaction, including $5 billion in debt, covers terminals at Balboa and Cristóbal at either end of the Panama Canal.
• CK Hutchison is in talks to adjust the buyer consortium’s membership, with a potential strategic investor from the People’s Republic of China under consideration.
• Chinese anti-monopoly authorities and the Panamanian government have signaled that changes to the consortium and transaction structure are required to win clearance.
• The stalled deal has become a flashpoint in US–China competition over control of strategic maritime infrastructure.