By Ryan Hanrahan
The Wall Street Journal’s Costas Paris and Jack Pitcher reported that “China’s government is threatening to block a deal that would transfer ownership of dozens of seaports to Western investors if Cosco, China’s largest shipping company, doesn’t get a stake. The proposed sale includes two ports at the Panama Canal and more than 40 others around the world, all owned by Hong Kong-based CK Hutchison.”
“China is pushing for state-owned Cosco to be an equal partner and shareholder of the ports with BlackRock and Mediterranean Shipping Co., a containership operator, according to people familiar with the deal talks,” Paris and Pitcher reported. “BlackRock and MSC in March reached a preliminary agreement to buy the ports in a deal valued at nearly $23 billion.”
“Now, BlackRock, MSC and Hutchison all are open to Cosco’s taking a stake, the people familiar with the talks said,” Paris and Pitcher reported. “Any deal giving a stake in the Panama ports to a Chinese-owned company would likely upset President Trump, who has threatened to take control of the canal and has objected to Hutchison’s ownership of two ports there. The White House didn’t respond to a request for comment Thursday.”
Source : illinois.edu