BlackRock to buy Panama Canal ports : FT
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Trump has regularly claimed that China runs the canal and earlier this year threatened to demand Washington gain control over the waterway.
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Cargo containers sit stacked as cranes load and unload containers from cargo ships at the Cristobal port, operated by the Panama Ports Company in Colon, Panama, on February 4, 2025. (AP)
BlackRock has agreed to acquire two key Panama Canal ports from their Hong Kong-based owner in a $22.8 billion transaction, following pressure from Donald Trump over alleged Chinese control of the crucial canal.
A corporate statement released Tuesday revealed that the ports' Hong Kong-based owner, CK Hutchison, will sell the business to a consortium that includes BlackRock, Global Infrastructure Partners, and Terminal Investment Limited.
The consortium would purchase a 90% interest in the corporation that owns and runs Panama's two ports.
Trump has regularly claimed that China runs the canal and earlier this year threatened to demand Washington gain control over the waterway.
The transaction also includes an 80% share in CK Hutchison's ports companies, which operate 43 ports across 23 countries, including the UK and Germany. It also operates ports in Southeast Asia, the Middle East, Mexico, and Australia.
The remaining 20% interest is held by PSA, a port operator controlled by Temasek, Singapore's government wealth fund. CK Hutchison said it expects to collect more than $19 billion from the transaction, which includes the redemption of some shareholder debts. CK Hutchison's market capitalization is HK$148 billion ($19 billion).
Trump's election victory in November and his calls for the US to restore control of the canal pushed CK Hutchison to contemplate the sale, resulting in a brief and intensive phase of talks for the ports, according to sources with knowledge of the discussions.
One source detailed how Trump's win and discussion about annexing Canada, Greenland, and Panama pressured Panamanians.
The source added that CK Hutchison "realised that it was a political headache and they wanted to do something".
To handle the possible political backlash, BlackRock CEO Larry Fink briefed top members of the Trump administration, including the president, to win their support for the buyout, familiar sources said.
One source detailed how the consortium would not have submitted its proposal if they felt the US government would not have approved.
CK Hutchison is owned by Hong Kong's richest man, Li Ka-shing, and his family. Its portfolio includes ports, retail, telecoms, and other infrastructure. Port activities accounted for approximately 9% of CK Hutchison's total revenue of HK$461.6 billion in 2023.
Hong Kong-based Hutchison Ports, one of the world's largest container terminal operators, has been operating ports on both sides of the canal since 1997 under concessions from the Panama government.
These facilities have often sparked political commentary from American politicians who have claimed that CK Hutchison's role means China effectively controls the canal.
