The Bank says that the Panama Deal involving BlackRock and Hutchison is Completely ‘Understandable.
JPMorgan said selling the Panama terminals was “understandable” given that Hutchison’s ownership has come under scrutiny from the Trump administration amid wider US concerns about alleged Chinese government control and influence on Panama Canal operations. But JPMorgan said the sale of Hutchison’s other terminals outside of China was a “surprise” and could be “an opportunistic deal.” “Based on our understanding of the management philosophy of CKH, any deal is possible as long as ‘the price is right,’” the bank said in a research note.
Hutchison’s $22.8 billion disposal of most of its global terminal interests to a consortium of BlackRock Group and Mediterranean Shipping Co.’s Terminal Investment Limited (TiL) is likely to trigger a wave of terminal deals as MSC divests facilities to meet regulators’ anti-trust demands. These are expected to include terminals at Rotterdam, Le Havre, Antwerp, Hamburg and in Egypt. The sale has also raised questions about the future of Hutchison’s port interests in China — which are not part of the BlackRock/TiL deal — and the 20% stake in Hutchison Port Holdings (HPH) held by Singapore-headquartered terminal operator PSA International. Hutchison is not the most dynamic operator. Its ports portfolio has been chugging along since the COVID-19 pandemic. There has been growth, but it’s been organic, mainly expanding capacity at existing terminals rather than acquiring new ports
Source: NEWSROOMPANAMA
