China is asserting itself in a deal involving CK Hutchison Holdings (HKG:0001), saying it will block the conglomerate's sale of its ports to Western investors if state-owned Cosco Shipping (HKG:1919, SHA:601919) does not get a stake, the Wall Street Journal reported Friday, citing people familiar with the deal.
Beijing wants Cosco to get an equal share of the ports with BlackRock and containership operator Mediterranean Shipping, the report said, citing the sources.
Both BlackRock and MSC reached a preliminary deal to purchase the ports for nearly $23 billion in March, the report said.
The three parties are open to Cosco entering the fray, but they won't likely reach a deal before July 27, the end of the exclusivity talks, the report said.
China's involvement in the deal could upset US President Donald Trump, who wants to take control of the Panama Canal, the report said. Hutchison owns two ports near the canal.
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