An investor consortium, backed by BlackRock, has agreed to acquire a majority stake in the Hong Kong-based firm managing ports at both ends of the Panama Canal, shifting control to a U.S. entity amidst White House initiatives to counter Chinese influence.
On Tuesday, it was unveiled that Hong Kong’s CK Hutchison is finalizing a $22.8 billion deal with U.S. and Swiss investors, encompassing not only ports along the Panama Canal but also several others worldwide, highlighting a diplomatic victory for U.S. President Donald Trump.
During his inauguration on January 20, Trump committed to reclaiming influence over the Panama Canal, despite inaccurately asserting that China manages it. This newly announced transaction seems to facilitate U.S. interests in gaining control over the crucial ports at both entrances of the Panama Canal.
Although the Panama Canal Authority, an independent Panamanian government agency, manages the canal, Trump’s administration has voiced concerns over Chinese and Hong Kong corporate presence, citing security risks linked to CK Hutchison’s port operations.
The canal, connecting the Atlantic and Pacific Oceans, is a strategic asset for Washington, as over 75% of transiting vessels are either departing from or heading to the U.S. Approximately 12,000 ships traversed the canal last year.
This deal will see the investor group securing a 90% interest in Panama Ports Company, which has overseen the Balboa and Cristobal ports for over 20 years, according to CK Hutchison.
Significantly, according to a Reuters report citing a source familiar with the matter, this deal would mark BlackRock’s most extensive foray into infrastructure investment. The firm, headquartered in New York and recognized as the world’s largest asset manager, has briefed U.S. administration officials and congressional leaders about this strategic move.
Ryan Berg, who leads the Americas Program at the Center for Strategic and International Studies in Washington, described the sale as a significant win for the United States. He expressed hope that this development would end the ongoing discussions around the security of the canal.
