Hong Kong’s richest man Li Ka-shing’s conglomerate CK Hutchison Holdings announced late Tuesday that it will sell its global port operations, excluding those in Hong Kong and mainland China, to U.S. investment firm BlackRock.
The deal, which includes two ports along the Panama Canal, is seen by analysts as a strategic move to steer clear of geopolitical conflicts. However, Li’s conglomerate still holds significant investments in sensitive sectors such as energy and telecommunications worldwide.
In a statement, CK Hutchison said it had reached an agreement in principle with a consortium consisting of BlackRock, Global Infrastructure Partners, and Terminal Investment Limited (collectively known as the “BlackRock-TiL Consortium”) to sell its entire stake in Hutchison Port Holdings S.à r.l. (HPHS) and Hutchison Port Group Holdings Limited (HPGHL). CK Hutchison expects to receive over $19 billion (approximately HK$147.7 billion) from the transaction.
The sale includes assets in 43 ports across 23 countries, covering a total of 199 berths operated through subsidiaries and joint ventures. However, the announcement emphasized that the deal does not include ports in Hong Kong, Shenzhen, southern China, or any other mainland Chinese port.
A “purely commercial” decision
CK Hutchison’s Co-Managing Director Frank John Sixt stated that the transaction was “purely commercial in nature and wholly unrelated to recent political news reports concerning the Panama Ports.” He described the deal as “the result of a rapid, discrete but competitive process in which numerous bids and expressions of interest were received.”
However, market analysts see a broader strategic calculation behind the move.
Joseph Ngan, former head of Hong Kong i-Cable Finance Channel, said the decision clearly aims to reduce geopolitical risks.
“From Li Ka-shing’s perspective, or that of his son Victor Li, this is about avoiding entanglement in geopolitical conflicts and minimizing uncertainties in future international business operations,” Ngan said.
Ngan also expressed concerns that Li’s extensive investments in global energy and transportation sectors could be affected by geopolitical tensions.
Li’s expansive global investments
In recent years, Li has actively expanded his international investments in the energy and transportation sectors, becoming a key player in infrastructure development across multiple countries. His business portfolio spans oil, energy, electricity, construction materials, water services and transportation. These strategic acquisitions in various global markets have drawn significant attention.
Through its European subsidiary, Hutchison Whampoa, Li holds more than a 25% stake in Canada’s Cenovus Energy Inc., a major North American oil and gas company involved in exploration, production, refining, and distribution across Canada, the U.S. and the Asia-Pacific region.
In the U.K., CK Infrastructure, Hong Kong Electric, and the Li Ka Shing Foundation jointly acquired electricity grid assets covering London, Oxford, and Cambridge, providing power to 7.8 million customers. The investment not only ensures steady returns but also cements CK Infrastructure’s long-term influence in the British energy market.
CK Infrastructure also expanded aggressively in Australia, joining hands with HK Electric to acquire the Electricity Trust of South Australia (ETSA) in South Australia, as well as Powercor Australia Limited and Citipower in Victoria, making it one of the country’s largest power distributors.
Li’s conglomerate also has a strong presence in telecommunications. Under its subsidiary Three, CK Hutchison provides mobile services in the U.K., Italy, Denmark, Ireland, Austria and Sweden. In 2024, it merged its U.K. operations with Vodafone to create Britain’s largest mobile network operator. However, the merger was subject to a national security review under the U.K.’s National Security and Investment Act.
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