How can Beijing antitrust probe affect Panama ports sale if Hutchison delays signing?
Market regulator empowered to put limits on sale or even halt deal under Anti-Monopoly Law, legal experts explain
China’s market regulator could impose conditions on CK Hutchison Holdings’ sale of its overseas ports upon the completion of an antitrust probe, which may lead to the emergence of a new buyer if the time limit on the deal has passed, legal experts and a political analyst have said.
They also explained that the national antitrust law empowered the regulator to investigate cases involving other jurisdictions, so the probe would not undermine the “one country, two systems” governing principle in Hong Kong.
The deal has come under repeated attack by pro-Beijing media. The Ta Kung Pao newspaper published an editorial on Tuesday urging the conglomerate founded by tycoon Li Ka-shing to halt the sale, as well as articles on Tuesday and Wednesday naming lawmakers who were opposed to the deal.
The transaction involves CK Hutchison selling its 43 overseas ports, including the two at each end of the Panama Canal, to a consortium led by United States investment firm BlackRock for US$23 billion. The conglomerate would receive US$19 billion in cash under the deal.
The Hong Kong and Macau Affairs Office and the liaison office reposted the articles on their websites, keeping up pressure on the company for a third straight week by sharing such critical pieces from pro-Beijing media.
CK Hutchison and the BlackRock consortium did not sign any documents on Wednesday as previously scheduled and as reported earlier by the Post.
Last Friday, China’s State Administration for Market Regulation (SAMR) announced that it would launch an antitrust investigation into the transaction.