MSC Subsidiary and BlackRock to Acquire 80% Stake in Hutchison Ports

The Chinese conglomerate (Hong Kong) CK Hutchison Holdings has announced that is is selling majority stake in Hutchison Ports to a consortium comprising shipping line MSC’s Terminal Investment Limited (Til) arm and US investment fund BlackRock-TiL.

The consortium is to acquire 80% of Hutchison Ports (which includes the UK trading hub of Felixstowe) along with 90% of Panama Ports Company, which manages the Panamanian ports of Balboa and Cristobal, for a total cost of US$22.8 billion.

The transaction requires confirmation and approval from various regulatory authorities, but given its geopolitical significance, opposition is unlikely.

One of the largest of its kind in the industry, the deal gives 80% of CK Hutchison's controlling interest in subsidiaries and affiliates that own, manage, and develop a total of 43 ports comprising 199 berths in 23 countries.

By combining Terminal Investment's existing capacity (which handles 43.2 million TEU) with the assets acquired from CK Hutchison Holdings (which handle 36 million TEU) and its 49% stake in Hamburg’s HHLA, MSC will rise from its current seventh-place ranking to the top of the global container port sector, surpassing giants like DP World, PSA International, and Cosco.

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