CK Hutchison executive defends delay in Panama ports deal

HONG KONG: A top executive at CK Hutchison on Thursday (Aug 14) brushed off the delay in offloading its Panama Canal ports as “not particularly troublesome”, as the Hong Kong conglomerate reported its half-year earnings.

The firm in March proposed the sale of its global ports business comprising 43 ports in 23 countries, including operations in the vital Central American waterway, to a US-led consortium for US$19 billion in cash.

The deal was seen as a political win for US President Donald Trump, who had vowed to “take back” the Panama Canal from alleged Chinese control. 

However, Beijing has since stepped up regulatory scrutiny, and CK Hutchison said last month it was looking to invite a Chinese “major strategic investor” to join discussions.

“(The deal) is taking much longer than we had expected when we announced in March, but frankly that’s not particularly troublesome,” executive Frank Sixt said at a post-earnings analyst presentation. 

The firm was “into a new stage of our deal”, said Sixt, who is the group’s co-managing and finance director.