PSA shelves Hutchison sale
PSA International has shelved its plans to sell its 20% stake in Hutchison Ports.
Bloomberg reports that the terminal operator has failed to generate interest in its US$4 billion offering. PSA bought the stake in 2006 for US$4.4 billion.
PSA has declined to comment on the decision to shelve the sale, which reportedly drew interest from Beijing from Cosco Shipping and China Merchants.
PSA is the world’s largest container terminal operator, with Hutchison ranking in sixth place according to data from UK consultants Drewry.
A recent Drewry report pointed to an increased fear of recession, higher inflation and rising interest rates hitting investor sentiment in ports.
Lower container volumes and increasing manpower costs have hit margins for most industry participants, Drewry warned.
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