CK Hutchison’s $22.8 Billion Port Sale to BlackRock Draws Chinese Scrutiny

China’s top market watchdog announced Sunday that it is closely monitoring CK Hutchison’s proposed sale of its global ports business to a consortium led by BlackRock, warning that the deal must undergo proper antitrust review. According to Reuters, the State Administration for Market Regulation (SAMR) stressed that parties involved in the transaction should not attempt to bypass regulatory oversight.

The Hong Kong-based conglomerate, controlled by billionaire Li Ka-shing, revealed last month plans to divest an 80% stake in its international ports business, covering 43 ports across 23 countries. The enterprise value of the deal, including debt, is estimated at $22.8 billion. Per Reuters, PSA International of Singapore, which owns the remaining 20%, is reportedly considering a sale of its share as well.

Of particular concern are two ports located along the strategically vital Panama Canal, a region that has become a flashpoint amid escalating U.S.-China trade tensions. In its statement, SAMR reiterated that “no concentration of undertakings shall be implemented without approval, otherwise legal liability will be incurred,” emphasizing the need for formal regulatory clearance.

Related: China Scrutinizes CK Hutchison’s $22.8 Billion Port Sale Plan

The scrutiny follows a Wall Street Journal report on April 16 suggesting that the BlackRock-led group, which includes the MSC shipping empire, has discussed moving forward with the bulk of the deal while negotiations over the Panama assets continue. According to Reuters, the sale is structured in two parts, separating the Panama ports from the rest of the portfolio to address potential geopolitical and regulatory sensitivities.

Former U.S. President Donald Trump has injected further political charge into the situation, framing the potential transfer as part of efforts to “reclaim” the Panama Canal. Trump recently advocated for American military and commercial vessels to be granted free passage through the Panama and Suez canals. Meanwhile, Chinese state media have criticized CK Hutchison’s decision, portraying the move as undermining China’s strategic interests.

Related: Reuters