Hong Kong conglomerate CK Hutchison's HKEX:1' Panama unit, PPC, is filing an arbitration against Maersk OMXCOP:MAERSK_A 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.