A consortium led by BlackRock has acquired two strategic ports on either side of the Panama Canal, in a deal valued at $22.8 billion. This acquisition comes shortly after President Trump’s threat to use force to restore U.S. control over the canal, a vital energy chokepoint. The transaction also included several dozen ports worldwide. According to Bloomberg, Larry Fink, CEO of BlackRock, proposed the acquisition to President Trump, addressing concerns over the Chinese-linked ownership of these ports. The purchase, made from CK Hutchinson, owned by Hong Kong billionaire Li Ka-Shing, included the ports of Balboa and Cristobal for $19 billion. Additionally, CK Hutchinson will divest its stakes in 43 other ports globally. Trump’s focus on the Panama Canal intensified post-election, citing concerns over its control and operations. Originally constructed by the U.S., the canal’s control was transferred to Panama in 1977. Recent droughts have highlighted the canal’s vulnerabilities, impacting its usage for U.S. LNG exports to Asia. Despite alternatives, the canal remains crucial for energy exports, with companies like Cheniere Energy opting for other routes when economically viable. — news from OilPrice.com
