Hong Kong conglomerate seeks $1.5 billion in damages from Panama for takeover of canal ports

HONG KONG conglomerate CK Hutchison is seeking over $1.5 billion in damages from Panama following the country's seizure of two canal ports amidst U.S.-China tensions. The conglomerate initiated new arbitration proceedings against Panama, claiming the Central American nation breached an investment protection treaty through "sovereign acts" targeting its decades-old ports concession.

Originally, Panama seized the Balboa and Cristobal ports in February after a Supreme Court ruled the concession held by CK Hutchison's subsidiary was unconstitutional. The ports are crucial for the Panama Canal and had become a point of contention between the U.S., China, and Panama. CK Hutchison, controlled by the family of Hong Kong's richest man Li Ka-shing, had announced a $23 billion deal to sell its global ports business, including the seized ports, to a consortium involving U.S. investment firm BlackRock. However, progress on the deal has been hindered by geopolitical tensions and legal challenges.