In a landmark $22.8 billion deal, investment giant BlackRock has secured majority stakes in key ports on both sides of the Panama Canal, wresting control from Hong Kong-based CK Hutchison Holdings. The move marks a significant shift in global infrastructure ownership, bringing two major ports under American corporate control.
The agreement, announced jointly by BlackRock and CK Hutchison on Tuesday, involves the sale of all shares in Hutchison Port Holdings and Hutchison Port Group Holdings. These entities oversee 80% of the Hutchison Ports network, which spans 43 ports across 23 countries.
BlackRock, alongside Global Infrastructure Partners and Terminal Investment, will acquire a 90% stake in Panama Ports Company. This company operates the critical ports of Balboa and Cristobal, serving as strategic gateways for global trade.
Political Undercurrents
The deal follows escalating geopolitical tensions, particularly amid former President Donald Trump’s assertions that China influenced the canal. “China is running the Panama Canal that was not given to China, that was given to Panama foolishly,” Trump declared at Joint Base Andrews last month, vowing to “take back” control.
Panama’s President Jose Raul Mulino dismissed Trump’s claims, reiterating that the canal remains under the independent Panama Canal Authority. However, in a strategic shift, Mulino confirmed Panama’s decision to exit China’s Belt and Road Initiative after discussions with U.S. Secretary of State Marco Rubio.
Business First, Politics Later?
CK Hutchison co-managing director Frank Sixt emphasized that the transaction was purely commercial. “This was a rapid, competitive process with multiple bids,” he stated, distancing the sale from geopolitical speculation.
Meanwhile, financial markets reacted sharply. BlackRock’s shares dipped 2.1% to $946.22, while U.S.-listed CK Hutchison shares surged 15% to $5.74.
As BlackRock tightens its grip on global infrastructure, this deal signals a profound realignment in the balance of economic power—one with implications far beyond the Panama Canal’s shores.
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