CK Hutchison announced on Monday that it is looking for a large strategic Chinese investor to join its consortium bidders in the $22.8 billion port business. This follows media reports that the state-owned China COSCO Shipping Corp. may be joining the group.

In a press release, CK Hutchison stated that changes in the composition of the consortium and the structure will be required for the deal's approval by regulatory agencies. The company will give as much time needed to obtain these approvals.

This announcement was made as a 145 day exclusivity period between CK Hutchison, the original bidder consortium led by BlackRock, and Gianluigi Aponte’s MSC expired on Sunday.

As tensions escalate between China and the United States, the deal, which includes the two ports located near the strategically important Panama Canal, is becoming highly politicised.

Beijing sees the sale as a potential threat to its interests. It views the BlackRock-led group as a proxy of growing American influence in an area China considers important economically and politically.

Sources say that COSCO, a major player in China's global shipping ambitions, is considering a bid. (Reporting and editing by Tom Hogue, Christopher Cushing and Clare Jim)

(source: Reuters)