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A US group is buying a Hong Kong company’s stake in two Panama Canal ports for $22.8 billion
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CK Hutchison said it would sell its stake in the ports to an investment group led by BlackRock
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The deal comes amid growing tensions between Panama and the Trump administration
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It puts crucial ports under American corporate ownership and is part of a larger deal wherein the US asset manager giant is set to acquire control of 43 other ports in 23 countries
A US investment group is buying a Hong Kong company’s stake in two Panama Canal ports for $22.8 billion amid growing tensions between Panama and the administration of US President Donald Trump.
CK Hutchison Holding in a filing on Tuesday said it would sell all shares in Hutchison Port Holdings and all shares in Hutchison Port Group Holdings to a consortium led by BlackRock. The two units hold 80% of the Hutchison Ports group that operates 43 ports in 23 countries, including two of the four major ports along the Panama Canal.
The deal puts crucial ports under American corporate ownership. It is part of a larger deal wherein the American asset manager giant is set to acquire control of 43 other ports in 23 countries, including Mexico, the Netherlands, Egypt, Australia, and Pakistan.
The consortium, comprised of BlackRock, Global Infrastructure Partners and Terminal Investment Limited will acquire 90% interests in Panama Ports Company, which owns and operates the ports of Balboa and Cristobal in Panama, according to the filing.
“This agreement is a powerful illustration of BlackRock and GIP’s combined platform and our ability to deliver differentiated investments for clients. These world-class ports facilitate global growth,” BlackRock CEO Larry Fink said in a joint announcement with TilL of the deal. “Through our deep connectivity to organizations like Hutchison and MSC/TIL and governments around the world, we are increasingly the first call for partners seeking patient, long-term capital. We are thrilled our clients can participate in this investment.”
The 51-mile Panama Canal is vital to the US economy, cutting through Central America, linking the Atlantic and the Pacific oceans. About 12,000 ships used the canal last year, which connects 1,920 ports across 170 countries.
Disputes over the canal were first sparked in 2024 when Trump, then a presidential candidate, made accusations that Chinese companies have taken control of the ports.
Since being reelected, Trump has demanded that Panama surrender the Canal back to the US over fears that China would use it for military purposes amid the Asian power’s rising influence in Latin America.
Trump also threatened to use military force to reclaim the strategic waterway, connecting the Atlantic and Pacific Oceans during his January 20 inauguration speech, falsely claiming China is operating it. The US ceded the canal to Panama in 1999.
Panamanian President José Raúl Mulino has rejected Trump’s demand and said his country will retain control of the Panama Canal.
US Secretary of State Marco Rubio recently visited Panama.
Among others, Trump has also said he wants to buy Greenland as well as turn Canada into the 51st US state.
