A Hong Kong-based conglomerate announced Friday it has intensified its legal battle against Panama’s government following the seizure of its port operations, filing a petition to challenge the decree that authorized the takeover.
CK Hutchison stated that Panama illegally took control of its facilities, confiscated assets, and failed to engage in proper consultations, leading the company to pursue additional legal remedies both domestically and internationally.
The company’s subsidiary, Panama Ports Company, which operates two terminals adjacent to the strategically important Panama Canal, submitted an administrative request asking for reconsideration of Panama’s executive decision that resulted in the occupation of its operations and seizure of assets, according to CK Hutchison.
A week prior, Panamanian officials conducted searches at CK Hutchison’s local port subsidiary, further intensifying the conflict over control of the two facilities.
In January, Panama’s administration canceled the agreements that granted the company authority over the two canal ports after a judicial decision declared the contracts violated the constitution.
Officials announced last week that the disputed Balboa and Cristobal ports would be managed on an interim basis by Maersk and MSC.
Last year, CK Hutchison had reached an agreement for a $23 billion divestiture of numerous ports globally, including the Panamanian facilities, to a group headed by BlackRock and Mediterranean Shipping Company.
The transaction has faced opposition from Beijing while receiving support from U.S. President Donald Trump, who stated his intention to “reclaim” the Panama Canal in order to diminish Chinese control over the waterway’s critical infrastructure.
