BEIJING - US investment firm BlackRock is reportedly seeking control of just two ports in the Panama Canal currently operated by CK Hutchison Holdings, while Italy’s Mediterranean Shipping Company (MSC) aims to take over control of 41 other ports, according to a South China Morning Post report cited by Sputnik and RIA Novosti.
According to the publication's source, BlackRock, which is seeking to buy 43 ports from Hong Kong company CK Hutchison Holdings, intends to take control of only two strategic ports on the Panama Canal, while MSC-controlled Terminal Investment Limited (TiL) will have a controlling stake in the remaining 41.
According to the publication, CK Hutchison now has an 80 per cent stake in 43 ports.
Earlier, it was reported that Hong Kong-based company CK Hutchison Holdings would not sign an agreement to sell two of its strategic ports in the Panama Canal, as the Chinese authorities announced the launch of an antitrust investigation into the deal. The agreement was supposed to be signed before April 2.
On April 4, the New York Post reported, citing sources in BlackRock, that it believed that the Chinese authorities would ultimately have no objections to the purchase of two strategic ports in the Panama Canal by the American consortium it led, and the deal would take place.
Under the terms of the deal, CK Hutchison of businessman Li Jiacheng will sell global port assets to investors led by BlackRock for U$22.8 billion. These assets include a controlling stake and operational control over two ports on both sides of the Panama Canal.
Earlier, the Wall Street Journal reported, citing informed sources, that Chinese leader Xi Jinping was irritated by the Hong Kong company's plan to sell the Panama Canal ports to US businesses.
In his inauguration speech on January 20, US President Donald Trump announced his intention to take control of the Panama Canal. US Secretary of State Marco Rubio visited Panama on February 2 and told Panamanian President Jose Raul Mulino that Trump did not want to maintain the status quo regarding the Panama Canal given China's allegedly increased influence in the region. After that, the head of Panama said that the country's government would not extend the memorandum of understanding with China on the Belt and Road Initiative.
At the same time, Boris Moreno, the operational vice president of the Panama Canal, told RIA Novosti that China was not taking any part in its direct operation. He explained that Trump's statements about the transfer of the Panama Canal under Chinese control were related to the work of two ports managed by CK Hutchinson Holdings. According to Moreno, the company manages ports in England, the Mediterranean, Malaysia and the Middle East, but "the emphasis was on Panama." -BERNAMA-SPUTNIK/RIA NOVOSTI