- BlackRock (BLK), with Global Infrastructure Partners and Terminal Investment Limited, agreed to buy a 90% stake in Panama Ports and controlling interest in 43 ports across 23 countries from CK Hutchison for $22.8 billion, announced Tuesday.
- The deal shifts ownership of the Balboa and Cristobal ports near the Panama Canal from Hong Kong-based CK Hutchison to an American-led consortium, addressing U.S. concerns about Chinese influence, despite Panama’s control since the 1977 treaty.
- Trump’s administration flagged the ports as a potential security risk, while BlackRock briefed U.S. officials on the largest-ever infrastructure acquisition for the firm, aligning with strategic interests as CK Hutchison called it a purely commercial move.
BlackRock (BLK), alongside its newly acquired Global Infrastructure Partners (GIP) and Terminal Investment Limited, has struck a $22.8 billion deal to acquire a 90% stake in Panama Ports Company, which operates the Balboa and Cristobal ports flanking the Panama Canal, as announced on Tuesday. This transaction, as reported by the WSJ, the largest infrastructure acquisition in BlackRock’s or GIP’s history, also includes CK Hutchison’s controlling interest in 43 ports across 23 countries, shifting ownership from the Hong Kong-based conglomerate to a consortium with deep American ties. The move comes amid persistent U.S. concerns, voiced prominently by President Donald Trump, about foreign influence – particularly Chinese – over the canal, a linchpin of global trade that the U.S. constructed and handed to Panama in 1999 under a 1977 treaty.
Trump’s administration has viewed the ports as a potential security risk, with the president asserting in his inaugural address that “China is operating the Panama Canal,” despite Panama’s sovereign control since the handover. American apprehensions hinge on the notion that China could exploit these facilities for military purposes, such as monitoring ship movements, though Panamanian officials and former U.S. military figures have dismissed any breach of the canal’s neutrality or tangible military threat. BlackRock has proactively briefed both the Trump administration and Congress on the deal, signaling its alignment with U.S. strategic interests—a factor likely easing fears about the canal’s oversight, even as CK Hutchison’s Frank Sixt emphasized the sale’s “purely commercial” nature, distancing it from political narratives.
For BlackRock, this acquisition marks a bold expansion of its infrastructure ambitions following its purchase of GIP, a firm with a portfolio spanning energy, transportation, and assets like London Gatwick Airport and U.S. natural-gas pipelines. The $22.8 billion deal, born from a competitive bidding process with multiple offers, per CK Hutchison’s statement, positions BlackRock to oversee 43 ports worldwide, including the canal-adjacent 90% stake in Panama Ports. Trump’s long-standing criticism of the 1977 treaty, coupled with his discontent over Panama’s fees and Chinese-built infrastructure near the waterway, underscores the deal’s geopolitical weight. By bringing these assets under American corporate stewardship, BlackRock not only bolsters its growth trajectory but also addresses a contentious issue that has simmered since the canal’s transfer 26 years ago.
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