In total, the consortium of investors led by BlackRock will control 43 ports in 23 countries.
China's State Administration for Market Regulation (SAMR) said it will review CK Hutchison's Panama Canal ports deal in accordance with laws to ensure fair market competition and protect public interests, according to a Q&A release conducted by Hong Kong Ta Kung Wen Wei (HKTKWW) Media with the market regulator published on its official website.
The question raised by Hong Kong Ta Kung Wen Wei said that it is reported that Hutchison Ports, a subsidiary of Hong Kong-based conglomerate CK Hutchison Holdings, is expected to sign a transaction agreement with BlackRock on April 2 regarding the sale and whether the proposed transaction would require regulatory approval in China.
A spokesperson from the second antitrust enforcement division of the State Administration for Market Regulation said that:
"We have noted this deal and will conduct a review in accordance with the law to ensure fair market competition and protect public interests."
According to the Financial Times' source, SAMR is assessing whether the deal would violate regulations and restrict competition in China's domestic shipping market and international freight market.
Two FT sources familiar with the matter told the FT that the regulator consulted at least one industry expert to work on the case, who suggested imposing conditions on the port purchases to ensure the deal would not weaken the competitiveness of Chinese shipping companies and cargo owners.
According to a South China Morning Post source, authorities in all 23 countries where the ports operate are also expected to conduct their own antitrust reviews if they deem them legally necessary.
CK Hutchison said earlier this month that it agreed to sell most of the global $22.8 billion ports business, including assets it holds along the strategically important Panama Canal, to a group led by BlackRock. In total, the consortium will control 43 ports in 23 countries, according to Reuters.
When asked about CK Hutchison's sale of its overseas ports business, Chinese Foreign Ministry spokesperson Guo Jiakun said on Thursday that China firmly opposes moves that infringe on and undermine other countries' legitimate rights and interests through economic coercion, hegemonism and bullying.
Sources: Global Times, SCMP, Financial Times
