New York-based asset management giant BlackRock announced on Tuesday that it will acquire two ports serving the Panama Canal from Hong Kong’s CK Hutchinson, as part of a larger $22.8 billion deal.<\/p>\n
US President Donald Trump had threatened to regain control of the Panama Canal, believing that US ships were not being treated fairly due to Chinese influence. This deal could potentially alleviate those concerns.<\/p>\n
The ports will be acquired by a consortium that includes BlackRock, as well as Global Infrastructure Partners and Terminal Investment Limited.<\/p>\n
Hutchinson’s official statement said the deal was “completely unrelated to recent political news regarding the Panama Ports,” and that the deal was the result of a “fast” process.<\/p>\n
BlackRock declined to comment further, but sources say the firm has informed both the White House and Congress about the deal.<\/p>\n
According to the\u00a0*Financial Times*\u00a0(*FT*), CEO Larry Fink himself informed senior leaders in the Trump administration, including the president, to secure their support for the takeover, in order to overcome possible political obstacles.<\/p>\n
A source added that the consortium would not have proceeded with its offer if it believed the US government would not support the deal.<\/p>\n
The deal consists of two parts, one of which covers Hutchinson’s 90% stake in the ownership and operation of the Balboa and Cristobal ports in Panama.<\/p>\n
This transaction will be conducted separately from the second part, which covers 43 ports in 23 countries, including Germany and the United Kingdom, and 80% of the shares will be sold. Hutchinson’s ports in China are not included.<\/p>\n
The remaining 20% stake is held by PSA, a port operator owned by Singapore’s sovereign wealth fund Temasek.<\/p>\n
BlackRock did not provide an estimated closing date, likely due to the number of different regulators whose opinions will need to be sought. The deal is expected to be formally signed by April 2.<\/p>\n
CK Hutchison, controlled by Hong Kong’s richest man, Li Ka-shing, and his family, has a portfolio consisting of ports, retail, telecom, and other infrastructure. Port operations account for approximately 9% of CK Hutchison’s total revenue of HKD 461.6 billion (USD 593.97 billion) in 2023.<\/p>\n
Hutchison Ports, one of the world’s largest container terminal operators, has been managing the ports at both ends of the canal since 1997 under concessions from the Panamanian government.<\/p>\n","protected":false},"excerpt":{"rendered":"
New York-based asset management giant BlackRock announced on Tuesday that it will acquire two ports serving the Panama Canal from Hong Kong’s CK Hutchinson, as part of a larger $22.8 billion deal. US President Donald Trump had threatened to regain control of the Panama Canal, believing that US ships were not being treated fairly due […]<\/p>\n","protected":false},"author":1,"featured_media":8224,"comment_status":"closed","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"ep_exclude_from_search":false,"footnotes":""},"categories":[176],"tags":[7563,7560,2247,7555,6133,7561,319,302,7557,503,1971,3501,4924,7131,7559,2822,4364,7556,7562,7558,781],"class_list":["post-8211","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-america","tag-asset-management","tag-balboa-port","tag-blackrock","tag-ck-hutchinson","tag-container-terminal","tag-cristobal-port","tag-donald-trump","tag-financial-times","tag-global-infrastructure-partners","tag-headline","tag-hong-kong","tag-infrastructure-investment","tag-international-trade","tag-investment-deal","tag-li-ka-shing","tag-panama","tag-panama-canal","tag-port-acquisition","tag-port-operations","tag-terminal-investment-limited","tag-us-china-relations"],"yoast_head":"\n