A consortium led by BlackRock has reached a deal to acquire a significant stake in key ports around the Panama Canal, granting the U.S.-based group control over these strategic locations. The agreement comes amid claims from former President Donald Trump that the move represents the ‘reclaiming’ of the canal, despite strong opposition from Panamanian officials. Panama’s President, Jose Raul Mulino, refuted Trump’s statements, asserting that the canal remains under Panamanian ownership. The deal involves CK Hutchison selling its 80% stake in Hutchison Ports for $14.21 billion, with total proceeds reaching over $19 billion after loan repayments. The consortium, which includes Terminal Investment and Global Infrastructure Partners, will manage 43 ports globally. CK Hutchison emphasized the transaction’s commercial nature, denying any political motivations. The Panama Canal is a vital trade route, serving 1,920 ports across 170 countries, with a significant portion of traffic linked to the U.S. The sale concludes amid legal uncertainties surrounding CK Hutchison’s contract to operate the ports, following a local attorney general’s ruling deeming it unconstitutional. The deal marks a strategic shift for CK Hutchison, reducing its port operations’ earnings contribution while bolstering its infrastructure segment. Analysts view the sale as value-enhancing, potentially placing CK Hutchison in a net cash position. — news from Reuters
