SINGAPORE : PSA is paying US$4.4 billion, or S$6.9 billion, for a 20 percent stake in the port assets of Hong Kong's Hutchison Whampoa.
This is PSA's biggest investment ever and the port operator says the move will generate good long-term value.
PSA has been seeking to grow its global operations.
Industry watchers have been waiting for its next move after the port operator pulled out of a bidding war for the British ports and ferries group P and O earlier this year.
PSA says the move will allow the group to benefit from a well-diversified spread of assets globally.
Hutchison is the world's leading container port operator, with operations in 42 ports in 20 countries.
The Li Ka-shing flagship will realise a profit of about US$3.2 billion from the deal, which is expected to be completed by the end of May.
PSA says it sees the stake as a purely financial investment, and it will continue to expand its global footprint by investing in opportunities that make good commercial business sense.
The deal is expected to be financed through bonds and loans. - CNA /ct
The deal would mean PSA would have small stake in one of the regional rival ports in Malaysia
The deal allows PSA to have some foothold in Latin America, Indonesia, Malaysia and Greater China