News / MSC port arm to buy Hutchison ports including Panama and Felixstowe

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MSC’s port operating arm Terminal Investment Ltd (TiL) is set to assume full control of the UK’s largest container gateway, Felixstowe, along with a host of other hubs around the world – including Panama Ports Company. A consortium comprising TiL and hedge fund giant BlackRock agreed to purchase some 80% of Hong Kong terminal operator Hutchison’s global operations.

Hutchison-owner CK Hutchison said the deal “would be expected to deliver cash proceeds in excess of $19bn to the Group”.

Diego Aponte, Chairman of TiL and President of the MSC Group, commented: “Our relationship with Hutchison Ports goes back a long way and is a relationship of mutual respect and friendship.

“Furthermore, we are very pleased to partner with BlackRock with whom we share a longstanding and terrific relationship.

“We have a very high regard toward the Hutchison Ports management team, and if this transaction closes, we look forward to welcoming them into our larger family. We know that the investment in Hutchison Ports will be a very viable investment commercially,” he added.

An investor announcement said: “The board of CK Hutchison Holdings is pleased to announce that in-principle agreement was entered into on 4 March 2025 between the company BlackRock-TiL Consortium for the sale by the group of all shares in Hutchison Port Holdings S.a r.l. (“HPHS”) and all shares in Hutchison Port Group Holdings Limited (“HPGHL”).”

Around a year ago, BlackRock acquired Global Infrastructure Partners for $12.5bn and by doing so acquired its 30% stake in TIL, described by one observer at the time of MSC “being given a golden ticket to the world’s largest cash machine [ATM]”.

It is currently unclear to outsiders what the full asset register of the deal would comprise – CK Hutchison said it would not include its terminal on mainland China, nor the Pearl River Delta ports that form Hutchison Port Holdings Trust.

However, it did said the “sale perimeter” of HPHS and HPGIL covers “80% effective interest of the Group in the Hutchison Ports group, which in turn holds interests in subsidiary and associated companies owning, operating and developing a total of 43 ports comprising 199 berths in 23 countries, together with all HPH’s management resources, operations, terminal operating system, IT and other systems and other assets appertaining to control and operations of those ports”.

Some of its major assets include Felixstowe, Harwich and Thamesport in the UK, roughly half of the container terminal capacity in Rotterdam, and terminals in Barcelona, Brisbane, Sydney, Duisburg, Jakarta, Busan, Mexico and many more.

A Loadstar Premium article late last year predicted that MSC could be targeting the acquisition of its key UK hub.

The deal also includes Panama Ports Company, which has been under Trump’s firing line in recent days due to its perceived links to the Chinese government.

CK Hutchison said at this stage, an enterprise value of $22.765bn had been placed on 100% of the sale perimeter.

It holds around $5bn of debt, which means the equity value of the sale perimeter would be $17.765bn for 100%, while the equity value of 80% would be $14.212bn.

“The purchase price will be subject to adjustments by reference to the actual net debt at completion, and 80% of the consideration under the PPC transaction will also be deducted.

“After adjusting for minority interests and repayment of certain shareholder loans due from the Hutchison Ports group to the Company, the Transaction would be expected to deliver cash proceeds in excess of $19bn,” it added.

Negotiations will now take place on an exclusive basis for the next 145 days.

Vespucci Maritime chief executive Lars Jensen told The Loadstar the impact on the way MSC could run its liner network in the future could change fundamentally if the deal closes.

“One of the advantages of the Gemini network in comparison was its control over key hubs. If MSC is to have much control over a lot more of its key hubs it could dramatically elevate its reliability,” for example.

Interestingly, one of MSC chief executive Soren Toft’s departing remarks during his Q&A session at yesterday S&P Global TPM conference in Long Beach was that if Hutchison was interested in selling Panama Ports Company, “we would be interested in buying it”.

Last week, Panama’s Attorney General Luis Carlos Gómez declared that the contract between the country’s government and Panama Ports Company “unconstitutional”, according to local news reports.

“Based on the foregoing, I conclude that Law No. 5 of January 16, 1997, approving the contract to be signed between the State and Panama Ports Company, SA, for the development, construction, administration and management of port terminals” in the ports of Balboa and Cristóbal “is unconstitutional,” Newsroom Panama reported.

PPC’s contract to operate the ports of Balboa and Cristóbal, located on the Pacific and Atlantic coasts of the country respectively, was extended in 2021 to run for a further 25 years.

The publication explained that the attorney general stressed “that when negotiating that contract, it was improperly agreed to transfer the rights of the Panamanian State. Furthermore, this contract affects public welfare and interest, thereby affecting free competition and demand.”