Posted on April 2, 2025
CK Hutchison Holdings Ltd. (0001.HK) shares dropped the most in nearly two weeks after reports that Hong Kong billionaire Li Ka-shing is considering delaying the signing of a controversial deal to sell the company’s Panama Canal ports to a consortium including BlackRock Inc (BLK).
The stock fell as much as 4.7% Monday, the most since March 18. The slide has pared its year-to-date gain to 5.5%, versus the benchmark Hang Seng Index’s 16% rally.
Li’s reported decision came after Beijing ratcheted up pressure and criticisms of the transaction, which is part of a $19 billion mega deal by the conglomerate to sell 43 ports around the world. While the US has touted the deal as a win in taking back control of the canal back from China, Beijing views it as a threat to its shipping and trade interests.
Explainer: How Li Ka-shing Landed in the Middle of US-China Tiff
“Delays in the signing of the sale agreement could lead to prolonged uncertainty amidst changing market and geopolitical conditions, increasing the risk of deal failure,” said Denise Wong, a Bloomberg Intelligence analyst.
Work on the deal is still progressing, but the companies need more time to complete formalities such as due diligence, Bloomberg News reported last week, citing people with knowledge of the matter.
China earlier told state-owned firms to hold off on any new collaboration with businesses linked to Li and his family, and authorities have begun looking into the transaction for potential security or antitrust violations.
The pressure continued on Saturday, when China’s Hong Kong and Macau Affairs Office reposted an editorial in the city’s pro-Beijing newspaper Ta Kung Pao on the ports deal. The editorial urged the relevant companies to stop the transaction as soon as possible, adding that otherwise the “consequences will be serious.”
CK Hutchison Shares Fall as Li Ka-shing Mulls Ports Deal Delay
