BlackRock and Mediterranean Shipping Company’s (MSC) joint bid for most of CK Hutchison’s global port operations is expected to face a significant regulatory obstacle in Europe, with EU antitrust authorities preparing to open an in-depth investigation into the Spanish component of the transaction, a person with direct knowledge of the matter said on Thursday, (Reuters).
CK Hutchison, controlled by Hong Kong tycoon Li Ka-shing, is seeking to sell its 80% stake in its $22.8 billion ports business, which spans 43 ports across 23 countries. The politically sensitive divestment has become entangled in broader China–U.S. geopolitical tensions, given the strategic nature of several assets included in the global portfolio.
According to the source, the European Commission is likely to launch a full-scale investigation into the Spanish portion of the deal once its preliminary review concludes on December 10. Such an in-depth probe, previously unreported, could result in regulators demanding concessions from BlackRock and MSC—potentially including divestments—in exchange for securing competition clearance.
The Commission declined to comment on the matter. BlackRock, MSC, and CK Hutchison did not immediately respond to multiple emailed requests for comment.
Scope of EU Scrutiny Unclear
CK Hutchison holds port interests in several EU member states, including Belgium, Poland, and the Netherlands. It remains uncertain whether these assets will also draw scrutiny as the review progresses. Assets located outside the European Union fall beyond the Commission’s jurisdiction and are not subject to the EU review process.
Barcelona Terminal at the Center of Review
The Spanish segment under examination involves the acquisition of joint control by Terminal Investment Limited Holding (TiL)—a unit of Switzerland-based MSC—and BlackRock of Hutchison’s terminal at the Port of Barcelona. The facility can simultaneously serve multiple mega-ships and features an eight-track rail terminal, the largest of its kind on the Mediterranean Sea, providing critical connectivity for freight flows across Southern Europe.
TiL already operates a terminal at the Port of Valencia, a fact likely to draw attention from regulators assessing potential overlaps or competitive concerns in the Spanish container terminal market.
The broader transaction also includes two port assets located along the strategically vital Panama Canal, adding to the political sensitivity of the deal amid heightened scrutiny of global supply-chain infrastructure by major geopolitical powers.
Lengthy Review Expected
Full-scale EU investigations generally last around four months or longer. During this period, companies often offer remedies—including structural or behavioural concessions—to address competition concerns and secure regulatory approval.
If launched as anticipated, the probe would mark a significant regulatory milestone in one of the largest proposed acquisitions in the global ports sector in recent years.