CK Hutchison’s $22.8bn plan to divest most of its global ports business is facing significant delays, with sources indicating the 145-day exclusivity window for talks with a BlackRock-led consortium is likely to be extended beyond its July 27 deadline. The transaction, already under scrutiny due to the inclusion of two strategic ports in Panama, has become a geopolitical flashpoint amid worsening US-China relations.

As reported by Reuters, the Hong Kong-based conglomerate controlled by billionaire Li Ka-shing is negotiating exclusively with a consortium comprising BlackRock and Mediterranean Shipping Company (MSC). The sale includes 43 port assets across 23 countries, but attention has centred on the Balboa and Cristóbal terminals on either side of the Panama Canal. These locations are considered highly strategic, handling roughly 3% of global seaborne trade and a substantial share of US container traffic.

The deal, first announced in March, has already missed one key milestone: a separate agreement covering the Panama assets was supposed to be finalised by April 2, but no documentation was signed. Now, three individuals close to the matter have told Reuters that the broader talks may continue beyond the July deadline, with neither party seeking an immediate exit despite growing complications.

The political stakes rose sharply after US President Donald Trump publicly endorsed the transaction, framing it as a "reclamation" of the Panama Canal from alleged Chinese influence, despite the canal being under Panamanian control since 1999. The Chinese government, in turn, launched an antitrust review via its market regulator and voiced strong opposition to the sale, with pro-Beijing media accusing CK Hutchison of capitulating to US pressure.

Compounding the tension is the potential entry of Chinese state-owned shipping firm Cosco into the consortium. According to Bloomberg, Cosco is negotiating access to full transaction data and has demanded veto rights over operational decisions, claims it argues are necessary to protect China’s national interests. Analysts warn that including Cosco could provoke US objections and further complicate regulatory approval.

CK Hutchison has publicly stated that the sale will only proceed under full compliance with regulatory frameworks in all relevant jurisdictions. The company is also attempting to reassure shareholders, asserting that the deal is being treated strictly as a commercial transaction. Nevertheless, the escalating political noise, coupled with internal deal delays and unresolved governance issues, suggests that closing the deal in the near term remains unlikely.