China Delays $23bn Sale of Panama Canal Ports to US-backed BlackRock Consortium.

China has held up the $23 billion sale of dozens of ports, including two key ports in the Panama Canal, to a group led by US investing giant, BlackRock, after President Donald Trump expressed concern about Beijing’s sway over the strategic shipping lanes.

March 4, CK Hutchison, a Hong Kong-based conglomerate controlled by 96-year-old billionaire Li Ka-shing, announced plans to sell 43 port facilities globally — including critical ports at both ends of the Panama Canal and near the Suez Canal — for approximately $22.8 billion.

But China’s State Administration for Market Regulation has unexpectedly initiated an investigation into potential violations of Chinese anti-monopoly laws, effectively stalling the deal.

The deal would have shifted control of two ports in Panama to the US-led investor group, but it is now likely to be delayed for at least a short period beyond the initial April 2 deadline, people familiar with the matter said. The deal had drawn praise from Trump and criticism from China’s state-backed media.

China President Xi Jinping is reportedly “angry” over CK Hutchison’s plans to sell its Panama Canal port operations — particularly because the company did not consult Beijing beforehand, according to the Wall Street Journal.

The deal — spearheaded by BlackRock Chief Executive, Larry Fink, a longtime Trump confidante — called for an agreement to be signed by April 2 (today), though it now is likely that the Wednesday deadline will be missed.

Also, Adebayo Ogunlesi, Founding Partner, Chairman & Chief Executive Officer Global Infrastructure Partners (GIP), a subsidiary of BlackRock, will lead the move to acquire the key port operations near the Panama Canal in the deal.

Source: Thisdaylive