Hong Kong-based conglomerate CK Hutchison's Panama unit has launched an arbitration against Maersk after the takeover of two strategic ports near the Panama Canal which are at the center of a legal
Hong Kong-based conglomerate CK Hutchison's Panama unit has launched an arbitration against Maersk after the takeover of two strategic ports near the Panama Canal which are at the center of a legal battle that has embroiled Beijing and Washington.
In a statement, Panama Ports Company (PPC) said Maersk broke a long-term contract by siding with the Panamanian government to help remove PPC from its operations at the Balboa port and replace it with a Maersk-affiliated operator.
"Contrary to the contract, Maersk undermined the agreement and aligned itself with the Republic of Panama in connection with its state-led campaign against PPC and a scheme to replace it through a takeover that installed new port operators," PPC said in a statement.
Panama's Supreme Court in late January invalidated the legal framework supporting the 1997 concession granting PPC the right to operate the Pacific-facing Balboa and Atlantic Cristobal terminals on either side of the Panama Canal.
By the following month, the government had awarded temporary contracts for subsidiaries of Maersk and the Mediterranean Shipping Company (MSC) to run Balboa and Cristobal, respectively.
The dispute also complicated CK Hutchison's planned $23 billion sale of a majority stake in its global ports business to a
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