In a significant development indicating a change in geopolitical dynamics, Hong Kong-based conglomerate CK Hutchison Holdings has agreed to sell its controlling stake in Panama Ports Company (PPC) to a consortium led by U.S. asset management giant BlackRock. This transaction, valued at approximately $22.8 billion, includes the Balboa and Cristóbal ports on both sides of the Panama Canal and 43 other port facilities across 23 countries.
CK Hutchison is selling 90% interest in Panama Ports Company, which holds the contract to run the ports of Balboa and Cristóbal until 2047. The sale involves CK Hutchison’s 80% stake in Hutchison Ports. The rest of Hutchison Ports is owned by Singapore’s PSA International.
BlackRock, the world’s largest asset manager, is leading the consortium to purchase the stake and this marks its most substantial infrastructure investment to date. The consortium, comprised of BlackRock, Global Infrastructure Partners and Terminal Investment Limited will acquire 90% interests in Panama Ports Company, along with 43 ports in 23 countries including Mexico, the Netherlands, Egypt, Australia, Pakistan and other countries.
This comes amid the US President’s repeated call for the USA to reclaim control over the Panama Canal and reduce Chinese influence over it. President Trump has been vocal about reducing Chinese influence in the region, asserting intentions to “take back” the canal from Chinese control.
The deal came just a month after US Secretary of state Marco Rubio visited Panama City. After the meeting with Panamanian president José Raúl Mulino, Rubio had said that “control of the Chinese Communist party over the Panama Canal” was unacceptable and that the US would use “measures necessary to protect its rights”.
However, CK Hutchison insisted the deal was unrelated to Trump’s intentions, saying it was purely commercial in nature. The company’s co-managing director Frank Sixt said, “I would like to stress that the Transaction is purely commercial in nature and wholly unrelated to recent political news reports concerning the Panama Ports.”
However, not many people believe this, and it has been widely taken as a victory for Trump.
Donald Trump has hailed the deal, and he told the US Congress during his speech, “My administration will be reclaiming the Panama Canal, and we’ve already started doing it.” He added, “Just today, a large American company announced they are buying both ports around the Panama Canal and lots of other things having to do with the Panama Canal and a couple of other canals.”
However, Panama’s president Jose Raul Mulino rejected Trump’s claims, saying the Canal is Panamanian and will continue to be Panamanian.
The Panama Canal serves as a crucial conduit for global maritime trade, linking the Atlantic and Pacific Oceans. Approximately 4% of the world’s maritime commerce and over 40% of U.S. container traffic traverse this 51-mile waterway annually. The ports of Balboa and Cristóbal, situated at the canal’s Pacific and Atlantic entrances respectively, are integral to its operations, handling significant cargo volumes and facilitating international trade.
