CK Hutchison ports sale unlikely to be concluded this year

CK Hutchison

The big ports deal involving CK Hutchison has hit choppy waters. The Hong Kong-based conglomerate confirmed yesterday that its planned sale of 43 global ports for just shy of $23bn is unlikely to be completed this year as previously hoped.

The deadline for exclusive talks between CK Hutchison and suitors BlackRock and Mediterranean Shipping Co (MSC) has passed with no deal in sight.

Geopolitical headwinds and regulatory hurdles are slowing the deal. Chinese authorities are demanding a national security review—even though no Chinese assets are included. As a result, CK Hutchison is negotiating to bring China’s state-run shipping giant COSCO into the consortium to help ease scrutiny and secure Beijing’s green light.

Despite the delays, CK Hutchison remains cautiously optimistic.

“With a deal of this size and complexity, closing…would not in any case occur this year even if binding [new] arrangements are agreed this year,” Frank Sixt, CK Hutchison co-managing director, told analysts on Thursday. “There is a reasonable chance that those discussions will lead to a deal that is good for all of the parties. It is taking much longer than we had expected,” Sixt added.

Source: Splash247.com

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Stuart Turley is President and CEO of Sandstone Group, a top energy data, and finance consultancy working with companies all throughout the energy value chain. Sandstone helps both small and large-cap energy companies to develop customized applications and manage data workflows/integration throughout the entire business. With experience implementing enterprise networks, supercomputers, and cellular tower solutions, Sandstone has become a trusted source and advisor.   He is also the Executive Publisher of www.energynewsbeat.com, the best source for 24/7 energy news coverage, and is the Co-Host of the energy news video and Podcast Energy News Beat. Energy should be used to elevate humanity out of poverty. Let's use all forms of energy with the least impact on the environment while being sustainable without printing money. Stu is also a co-host on the 3 Podcasters Walk into A Bar podcast with David Blackmon, and Rey Trevino. Stuart is guided by over 30 years of business management experience, having successfully built and help sell multiple small and medium businesses while consulting for numerous Fortune 500 companies. He holds a B.A in Business Administration from Oklahoma State and an MBA from Oklahoma City University.