Hong Kong conglomerate CK Hutchison’s decision to sell its stakes in the Panama Canal ports has incurred the wrath of Beijing and thrust American buyer BlackRock into the spotlight.
The central government showed its displeasure last week by reposting on its websites scathing newspaper commentaries questioning the sale, which would give BlackRock control of the two ports in the canal and 41 others across 23 countries.
The deal will mean the US asset manager paying US$23 billion and the Li Ka-shing subsidiary walking away with US$19 billion in cash.
The commentaries had described the sale by Hutchison as a “betrayal of all Chinese people”, urging the company to decide which side it wanted to stand with.
CK Hutchison Holdings had come under intense pressure from US President Donald Trump after his re-election as he demanded that the Panama Canal be freed from what he saw as Chinese control. It unexpectedly announced earlier this month it was selling all its port stakes, except for those in China, to a consortium led by BlackRock.
Despite being an elite institutional investor with a significant presence in Hong Kong, BlackRock has kept a studiously low profile.
The company offers a wide range of investment solutions, including iShares exchange-traded funds (ETFs), and focuses on sustainable investing and financial well-being. Its offices span multiple floors in prime locations, such as Champion Tower and ICBC Tower.