CK Hutchison Holdings has initiated international arbitration against the Panamanian government, seeking $1.5 billion in damages following its forced takeover of the company’s port assets in Panama. The move comes after unsuccessful attempts to reach a resolution through diplomatic channels.
The company filed the arbitration claim against Panama for violations of an investment protection treaty, citing a series of actions taken by Panama in 2025 and 2026. These actions resulted in the termination of the concession agreements for the ports of Balboa and Cristóbal and the subsequent takeover of the port terminals. CK Hutchison, owned by Hong Kong billionaire Li Ka-shing, announced today that it is claiming damages exceeding $1.5 billion for the damage caused to its investments in Panama.
The conglomerate’s management expressed strong disagreement with the actions taken by Panama, describing them as violations of the treaty, and emphasized their intention to pursue all available legal remedies. The company stated it would continue efforts to resolve the dispute with Panama while asserting its rights under international law.
In late February, Panama physically entered the terminals at Balboa and Cristóbal, operated by a subsidiary of CK Hutchison. The government took control of the terminals’ administration and operations, excluding representatives from Panama Ports. This occurred after the Panamanian Supreme Court denied Panama Ports’ operating rights to the terminals in January, which connect Atlantic and Pacific trade routes.
CK Hutchison secured a 30-year concession for operating the two ports in 1997, with an extension approved in 2021 that extends the agreement through 2047. In 2022, the ports processed 2.7 million and 1.2 million containers, respectively, making up roughly 39% of Panama’s total container throughput at its five major ports.
Last year, amidst pressure from U.S. President Donald Trump on national security grounds, CK Hutchison announced plans to sell its major global port assets, including those in Panama, to a U.S.-led consortium led by BlackRock for $19 billion. In July, the company revealed plans to invite investors from mainland China to join the consortium and emphasized that no transaction would proceed without full regulatory approval.
Shares of CK Hutchison increased slightly today, rising 0.4% to HKD 69.80 ($8.90) per share, after opening higher earlier in the session.