Hong Kong-based conglomerate CK Hutchison has initiated arbitration proceedings against Denmark's A.P. Møller-Maersk after Panama seized the company's port assets in the country, the Wall Street Journal reports.

The dispute follows a January ruling by a Panamanian court that invalidated Hutchison's contracts to operate two terminals at the Panama Canal.

Subsidiary Panama Ports accuses Maersk of undermining a long-term agreement and acting in concert with the Panamanian government in a scheme to replace the company as operator.

The arbitration is set to be decided in London and is separate from Hutchison's legal action against the state of Panama. Maersk has declined to comment on the reports.