7 months ago

Panama Court Voids CK Hutchison Port Deal

Panama Court Voids CK Hutchison Port Deal
Panama top court rules CK Hutchinson canal deal as void, China says will take necessary action · livemint.com

Panama’s highest court said a deal letting a big company from Hong Kong run two important ports near the Panama Canal is not allowed.

This company, CK Hutchison, has been trying to sell these ports.

The court’s decision makes the sale more uncertain.

China said it will protect its companies’ interests.

The ports are part of a bigger plan to sell 43 ports around the world.

Some people think this decision shows that countries might be more careful about who owns important places like ports.

The company can still try to sell the ports, but it might get less money now.

The Panamanian President assured that the ports will continue to operate without disruption and that there will be no layoffs.

Key facts

Company Involved
CK Hutchison Holdings Ltd.
Ports Operated
Balboa and Cristobal
Contract Extension Year
2021
Legal Challenge Initiator
Panama’s Comptroller Anel Flores
Potential Sale Value
More than $19 billion
Buyer Consortium
Terminal Investment Ltd. and BlackRock Inc.
Chinese State-Owned Participant
China Cosco Shipping Corp.

Quotes

PPC

Panama Ports Company, a subsidiary of Hong Kong-based CK Hutchison Holdings, operates the Balboa and Cristobal terminals at the entrances to the Panama Canal.

“The ruling lacks a legal foundation and threatens economic stability.”
wionews.com

China's foreign ministry spokesperson

A spokesperson for the Chinese foreign ministry.

“Beijing would take all necessary steps to protect the legitimate rights and interests of Chinese companies.”
wionews.com

Sources

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