CK Hutchison intensifies legal push as Panama moves to seize ports

Hong Kong conglomerate CK Hutchison (0001) said on Friday it has escalated its legal fight in Panama after ​the government seized its port operations, petitioning for a review ‌of the decree behind the takeover.

The company said Panama unlawfully occupied facilities, seized property and ignored consultations, prompting further national and international ​legal action.

CK Hutchison's Panama Ports Company (PPC), which manages ​two terminals near the globally strategic Panama Canal, filed ⁠an administrative petition seeking reconsideration of Panama's executive action ​that led to the occupation of its facilities and ​confiscation of its property, CK Hutchison said.

Panamanian authorities searched the local ports unit of CK Hutchison a week ago, escalating the rift over ​the control of the two ports.

Panama's government in January annulled ​the deals that gave the company control of the two canal ‌ports ⁠following a court ruling deeming the contracts unconstitutional.

The government said last week the Balboa and Cristobal ports at the center of the dispute would be operated temporarily by Maersk ​and MSC.

CK Hutchison ​had agreed last ⁠year to a US$23 billion sale of dozens of ports worldwide, including the Panamanian terminals, to ​a consortium led by BlackRock and Mediterranean Shipping ​Company.

Reuters