Port of Panama City, Panama File photo:VCG

Hong Kong conglomerate CK Hutchison confirmed on Monday in a filing to the Hong Kong Stock Exchange that it is in discussions to bring major strategic investors from the Chinese mainland into its port transaction consortium. This move comes after the exclusivity period for negotiations over the proposed deal involving Hutchison Ports expired in March.

In the statement, CK Hutchison said that changes to the consortium's composition and transaction structure will be required to secure approvals from all relevant regulatory authorities. The company intends to allow sufficient time for discussions to reach a new arrangement.

The group stressed that it has repeatedly stated no transaction will proceed without obtaining approvals from all relevant regulatory authorities.

The announcement comes as a 145-day exclusivity period for talks between CK Hutchison and the original bidding consortium — led by BlackRock (BLK.N) and Gianluigi Aponte's MSC — expired on Sunday, according to Reuters.

On April 27, China's State Administration for Market Regulation stated that all parties involved in the CK Hutchison port transaction must not take any measures to circumvent antitrust review.

In response to a media question that the Wall Street Journal reported that China threatens to block the sale of dozens of ports to Western companies if Cosco, a Chinese shipping company, doesn't get a stake, Chinese Foreign Ministry spokesperson Lin Jian said on July 18 that: "On CK Hutchison's sales of its assets overseas, the State Administration for Market Regulation said that they would conduct a review in accordance with the law to protect fair market competition and safeguard public interests."

China firmly opposes using economic coercion, intimidation and bullying to violate and undermine other countries' legitimate rights and interests, Lin said.

Global Times