The proposed inclusion of Chinese shipping giant Cosco in Hong Kong conglomerate CK Hutchison's contentious global ports sale is a potential win for Beijing in a strategic sector, but the deal is far from final and could face resistance from Washington, sources and analysts say.
Since the deal was announced on March 4 to sell 43 of CK Hutchison's ports in 23 countries, including two along the Panama Canal, to a consortium led by U.S. firm BlackRock and Italian billionaire Gianluigi Aponte's family-run shipping company MSC, it has sparked a firestorm of criticism from China. While the U.S. government might oppose the inclusion of state-run Cosco in the consortium over perceived geopolitical risks posed by Chinese influence, bringing in the shipping giant could provide a more level playing field rather than one company being dominant, said a person with knowledge of the deal.
The complex deal would require approval from around 50 jurisdictions involved, and it would take at least two years for the process to be completed, sources and analysts said.
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