CK Hutchison Holdings, the conglomerate led by Hong Kong tycoon Li Ka-shing, has postponed the completion of its $23 billion global port sale until 2026. The deal includes two critical ports along the Panama Canal, underscoring rising geopolitical and regulatory challenges.
The update was confirmed by Frank Sixt, Co-Managing Director of CK Hutchison, during the company’s earnings briefing on August 14.
According to Sixt, the scale and complexity of the transaction make it “impossible to finalize within this year, even with binding agreements in place.” He acknowledged the process has taken longer than expected when it was first announced in March, but emphasized that CK Hutchison’s port operations are performing strongly, generating higher-than-expected cash flow.
In the first half of 2025, EBITDA from the ports division rose 9% to HKD 10.13 billion, driven by increased demand for cargo storage amid shifting global trade tariffs.
Still, the Panama port deal has become more complicated. The Panamanian government has filed lawsuits seeking to void CK Hutchison’s existing port contracts, while hinting that operations could be handed to state-backed entities.
Meanwhile, after its exclusive negotiation period with BlackRock expired, CK Hutchison invited a mainland Chinese partner to join the consortium. Bloomberg has reported that Cosco Shipping is the likely candidate. Analysts suggest Cosco’s involvement could improve regulatory approval chances, though it also introduces new uncertainties.
For the first half of 2025, CK Hutchison reported net profit of HKD 852 million (USD 109 million), a staggering 92% drop compared with HKD 10.2 billion a year earlier. The decline was largely due to a one-time charge of HKD 10.47 billion (USD 1.3 billion) related to the merger of Three UK with Vodafone in the UK.
Excluding these exceptional items, underlying profit actually rose 11% to HKD 11.36 billion, supported by strong performances in the ports and global retail divisions. Revenue grew 3% year-on-year, reaching HKD 240.66 billion.
“Geopolitical and trade tensions continue to shape a challenging macroeconomic environment, bringing both headwinds and opportunities,” said Chairman Victor Li Tzar-kuoi.
The group’s retail business grew 8% to HKD 98.84 billion, while its infrastructure division expanded 6% to HKD 28.6 billion. CK Hutchison declared an interim dividend of HKD 0.71 per share, up from HKD 0.68 a year ago.
In telecommunications, CK Hutchison and Vodafone Group completed the merger of Vodafone UK and Three UK on May 31, forming VodafoneThree – one of the largest telecom operators in the UK. CK Hutchison holds a 49% stake in the joint venture, while Vodafone owns 51%.
Despite profit pressures, CK Hutchison shares have risen 25% since the start of the year, although they slipped 0.4% to HKD 52 following the earnings release.
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