CK Hutchison escalates legal battle over Panama ports

Hong Kong conglomerate CK Hutchison said on Friday it had intensified its legal fight in Panama after the government seized its port operations, filing a petition to review the decree that enabled the takeover.

The company said authorities unlawfully occupied its facilities, seized property and failed to conduct proper consultations, prompting it to pursue further legal action both domestically and internationally, News.Az reports, citing Reuters.

Its local unit, Panama Ports Company (PPC), which manages two terminals near the strategically important Panama Canal, filed an administrative petition seeking reconsideration of the executive action that led to the occupation of its facilities and the confiscation of property.

The dispute intensified after Panamanian authorities searched the company’s local ports unit last week, escalating tensions over control of the two terminals.

In January, the Panamanian government annulled agreements granting the company control of the ports following a court ruling that declared the contracts unconstitutional.

Authorities later said the disputed ports — Balboa and Cristobal — would be temporarily operated by shipping giants Maersk and Mediterranean Shipping Company.

Last year, CK Hutchison agreed to sell dozens of ports worldwide, including the Panamanian terminals, in a $23 billion deal to a consortium led by BlackRock and Mediterranean Shipping Company.

The deal drew criticism from China but was welcomed by Donald Trump, who said he wanted to “reclaim” the Panama Canal in an effort to reduce Chinese influence over key assets linked to the waterway.

News.Az 

By Nijat Babayev