By Foo Yun Chee
BRUSSELS, Nov 27 (Reuters) – BlackRock and MSC are facing challenges in their bid to acquire CK Hutchison's terminal at Barcelona port. EU antitrust regulators plan to investigate this deal, according to a source familiar with the situation.
This deal is distinct from BlackRock and MSC's broader bid for CK Hutchison's global port operations, which was initiated earlier, as stated by MSC based in Switzerland.
CK Hutchison, led by Hong Kong billionaire Li Ka-shing, is looking to sell its 80% stake in its $22.8 billion ports business, which includes 43 ports across 23 countries. This situation has become complicated due to political tensions between China and the U.S.
The European Commission is expected to conduct a detailed investigation, which was not previously known, and may require BlackRock and MSC to make concessions to approve the deal.
The Commission has not made any comments, and BlackRock has not responded to multiple requests for statements.
CK Hutchison operates ports in several European countries, such as Belgium, Poland, and the Netherlands. It is uncertain if these other European assets will also face a review. However, non-EU parts of the deal will not be subject to EU review.
The overall package, which includes two ports along the strategically important Panama Canal, has become a politically charged issue between the U.S. and China.
The Spanish deal involves Terminal Investment Limited Holding (TiL), a subsidiary of MSC, along with BlackRock, taking joint control of Hutchison's terminal at Barcelona port.
This terminal can accommodate multiple large ships at the same time and features an eight-track rail system, making it the largest rail terminal on the Mediterranean coast and connecting the port to Southern Europe.
The European Commission plans to commence a full investigation after the initial review wraps up on December 10, according to the source.
Typically, detailed EU investigations last around four months or longer and may result in companies needing to offer concessions, such as selling off parts of their business, to alleviate competition concerns and gain regulatory approval.