In a significant development, a Hong Kong-based firm has agreed to sell its stake in the Panama Canal to a consortium backed by BlackRock. This $22.8 billion deal, which encompasses dozens of ports globally, marks a diplomatic win for former President Trump hours before addressing the U.S. Congress about his second term’s initial successes. Trump had not ruled out military action regarding U.S. control over the canal and expressed concerns about Chinese and Hong Kong-based companies’ presence in Panama.
The transaction will grant the consortium a 90% stake in Panama Ports Company, which operates Balboa and Cristobal ports. BlackRock has informed U.S. leadership about the deal, marking its largest infrastructure investment to date. The Panama Canal Authority, an autonomous agency, oversees the canal’s operations.
Panama’s authorities are auditing the contract compliance of CK Hutchison, whose port contract was deemed “unconstitutional” earlier this month. U.S. Secretary of State Marco Rubio recently visited Latin America, urging Panama to reconsider China’s influence near the canal. The sale involves billionaire Li Ka-shing’s conglomerate unit, giving the consortium control over an 80% stake in Hutchison Ports for $14.21 billion.
This deal excludes any interest in Hutchison Port Holdings Trust, focusing instead on international ports outside mainland China. The consortium negotiated exclusively for 145 days. BlackRock acquired Global Infrastructure Partners last October, highlighting infrastructure as a key investment opportunity.
— news from Reuters