7 months ago
Panama Court Voids CK Hutchison Port Deal
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.
Panama’s top court ruled CK Hutchison’s contract to operate two ports near the Panama Canal unconstitutional.
CK Hutchison’s shares dropped as much as 5.7% in Hong Kong trading following the ruling.
The company argued the ruling is inconsistent with the legal framework and reserved all legal options.
The ports are part of CK Hutchison’s plan to sell 43 global terminals to a consortium led by Terminal Investment Ltd. and BlackRock Inc.
China’s foreign ministry stated it will take measures to protect the interests of Chinese companies.
- Who
- Panama’s top court, CK Hutchison Holdings Ltd., China's foreign ministry, Panama’s President Jose Raul Mulino, Panama’s Comptroller Anel Flores
- What
- Panama’s top court ruled the contract for CK Hutchison to operate two ports near the Panama Canal as unconstitutional
- Where
- Panama, Hong Kong, and the Panama Canal
- When
- The ruling was announced late Thursday, with shares falling Friday
- Why
- The court found the contract extension cost Panama over $1 billion in lost tax revenue and lacked proper approvals
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




