The Chinese government has reposted content condemning the port deal between CK Hutchison and US firm BlackRock, calling it a ‘betrayal of China’.
According to Reuters, the commentary sent shares of the Hong Kong-based multinational significantly down on 14 March by 6.38 per cent.
On 13 March, the Hong Kong and Macau Affairs Office (HKAMO) shared a commentary on its website, which was first published in the Chinese state-backed newspaper Ta Kung Pao.
Reuters revealed that the piece highlighted criticism from online users, who described the sale as an act that “betrays and sells out the whole of Chinese people.”
The commentary also emphasized that the US could potentially limit China’s maritime trade, putting Chinese companies at significant risk in logistics and supply chains, and jeopardising the success of China’s Belt and Road initiatives.
This comes one week after BlackRock and Terminal Investment Limited (TiL) Consortium reached an agreement worth $22.8 billion to acquire the international port and terminal operations of CK Hutchison.
The deal was said to involve the consortium acquiring 90 per cent of Panama Ports Company (PPC), which manages the Balboa and Cristobal ports in Panama.
In addition, BlackRock will own 80 per cent of CK Hutchison’s ownership in 43 ports across 23 countries, including associated managerial resources, terminal systems, and other connected assets.
Despite CK Hutchison having agreed to exclusive negotiations with the BlackRock consortium for 145 days, Reuters revealed that the deal has not yet been finalised.
