From the Wall Street Journal, July 17:
Beijing pushes for state-owned Cosco to become shareholder of two Panama Canal ports, dozens of others in BlackRock deal
China’s government is threatening to block a deal that would transfer ownership of dozens of seaports to Western investors if Cosco, China’s largest shipping company, doesn’t get a stake.
The proposed sale includes two ports at the Panama Canal and more than 40 others around the world, all owned by Hong Kong-based CK Hutchison.
China is pushing for state-owned Cosco to be an equal partner and shareholder of the ports with BlackRock, and Mediterranean Shipping Co., a containership operator, according to people familiar with the deal talks. BlackRock and MSC in March reached a preliminary agreement to buy the ports in a deal valued at nearly $23 billion.
Now, BlackRock, MSC and Hutchison all are open to Cosco’s taking a stake, the people familiar with the talks said.
The parties aren’t likely to reach a deal before a previously agreed upon July 27 end date for exclusive talks between BlackRock, MSC and Hutchison, the people familiar with the talks said. The parties can’t strike a deal that includes Cosco until the exclusivity period ends.
Any deal giving a stake in the Panama ports to a Chinese-owned company would likely upset President Trump, who has threatened to take control of the canal and has objected to Hutchison’s ownership of two ports there. The White House didn’t respond to a request for comment Thursday.
After this article was published online Thursday, Rep. John Moolenaar (R., Mich.), who chairs a congressional committee on China, made public a letter he had sent to a top Panamanian official, saying that the inclusion of Cosco or any other Chinese company in port operations at the canal “would represent an unacceptable risk to the national security of both our nations.”
Hutchison’s initial plan to sell the ports angered Beijing, according to people familiar with the talks. Chinese authorities have told Chinese state-owned companies to freeze any coming deals with Hutchison or other businesses linked to its controlling shareholder, the family of the Hong Kong billionaire Li Ka-shing, these people said....
....MUCH MORE
Recently:
MSC's Aponte Eclipses BlackRock in Li Ka-shing’s Port Deal
One quibble. We know some stuff about the shipping companies.
MSC is not just "a containership operator." It is the world's largest, having passed Maersk's capacity in 2022. That achievement was in all the papers and better blogs (ahem).
MSC has the largest container fleet and an over 1mm TEU larger capacity. It is also a giant in logistics and other businesses involved in moving stuff around the world.
Because MSC is privately held they don't splash their numbers - so to speak - but revenue was almost €90 billion in '22 and Italian media reported the holding company booked quite a profit in what was a very good year for the entire industry. From TradeWindsNews,
Gianluigi Aponte’s MSC Group has — perhaps inadvertently — revealed its financial performance for the first time.
The holding company of the world’s largest liner company reportedly made €36.2bn ($38.4bn) in profits last year.
The number has been widely published by Italian media outlets after MSC announced the purchase of around half of high-speed Italian train operator Italo.
Turnover of the MSC Group was €86.4bn in 2022, according to Il Messaggero, which first reported the accounts.
Ebitda was €43.2bn and Ebit was €35.7bn.
The Geneva-based company possessed cash reserves amounted to €63bn and equity of €91bn. Medium to long-term debt is put at €26bn.
The figures reflect a big increase in profitability during the pandemic....
....MUCH MORE
As noted in a 2019 post:
Sept. 25
Shipping: "MSC Announces New Bunker Surcharge to Help Cover $2 Billion Per Year Low Sulphur Fuel Costs"
MSC Mediterranean Shipping Company S.A is another of the world's largest shippers who sound as though they are about to establish a GoFundMe page.
That's a joke.
The Aponte clan* is doin' alright.
****The latest Lloyd's 100 Most Influential People in Shipping (Edition Eight, Dec. 2017) has the Aponte famiglia at #10, just behind the Saadé family (CMA CGM) now led by Rodolphe after his father's death this summer, at #9.
If interested here's an ungated version of Edition Seven of the 100 Most Influential, for folks who don't subscribe via Maritime Cyprus.It's a year out of date but good background or a dandy prospect list.
The subscription makes a fine gift.
