Business, Feature, Freight News, Sea

CK Hutchison-MSC in $22.8 Billion Ports Deal

[ March 14, 2025   //   Gary G Burrows ]

The BlackRock-TiL Consortium and CK Hutchison said March 4 they have reached in principle agreements whereby BlackRock-TiL will acquire HPH’s 90 percent interest in the Panama Ports Co.,
BlackRock-TiL will also acquire CK Hutchison’s 80 percent effective and controlling interest in subsidiary and associated companies owning, operating and developing 43 ports comprising 199 berths in 23 countries. It also acquires all HPH’s management resources, operations, terminal operating systems, IT and other systems, and other assets appertaining to control and operations of those ports.
Total value of the deal, including the Panama Ports, is about US$22.8 billion, and is expected to be completed by early April. TIL is the port-operating arm of MSC.
The deal does not include any interest in the HPH Trust, which operates ports in Hong Kong, Shenzhen and South China, or any other ports in China. Panama Ports owns and operates the ports of Balboa and Cristobal in Panama.
The PPC Transaction will proceed separately on confirmation by the government of Panama of the proposed terms of the purchase and sale.
Acquisition will be completed following BlackRock-TiL conducting normal and usual confirmatory due diligence, settlement of definitive documentation, receipt of any necessary regulatory approvals, amongst others.
“This agreement is a powerful illustration of BlackRock and GIP’s combined platform and our ability to deliver differentiated investments for clients,” said Larry Fink, chairman and CEO of BlackRock. “Through our deep connectivity to organizations like Hutchison and MSC/TIL and governments around the world, we are increasingly the first call for partners seeking patient, long-term capital.
“We are delighted to partner with Terminal Investment Ltd. and MSC, with whom we have a longstanding and productive relationship, to make an offer for certain interests in ports owned and operated by Hutchison Ports Holdings,” said Bayo Ogunlesi, chairman and CEO of GIP. “Given GIP’s substantial expertise in owning and operating ports, together with our partners, we can focus on our joint ambition for these assets to continue to be world-class ports operators which are competitive, efficient, commercial and service-focused.”
“This transaction is the result of a rapid, discrete but competitive process in which numerous bids and expressions of interest were received,” said Frank Sixt, co-managing director of CK Hutchison. “After adjusting for minority interests and repayment of certain shareholder loans due from HPH to CK Hutchison, the transaction would be expected to deliver cash proceeds in excess of US$19 billion to our group.”
Sixt emphasized that the transaction is “purely commercial in nature and wholly unrelated to recent political news reports concerning the Panama Ports, noting the transaction remains to be confirmed pending due diligence.

Tags: BlackRock-TiL Consortium, CK Hutchison