Chicago – March 04, 2025
A Hong Kong-based company, CK Hutchison Holdings, has agreed to sell its controlling stake in a global port business to a group led by BlackRock Inc. The deal, worth nearly $23 billion, includes $5 billion in debt and will shift control of key ports near the Panama Canal to the U.S.-linked consortium.
The sale gives BlackRock’s group control over 43 ports in 23 countries, including the important Balboa and Cristobal ports in Panama. Other ports in Mexico, the Netherlands, Egypt, Australia, and Pakistan are also part of the agreement. However, ports in China, including those in Hong Kong and Shenzhen, are not included in the deal.
The Panama Canal is a crucial waterway for global trade, with about 70% of its shipping traffic linked to the United States. The U.S. originally built the canal in the early 1900s but transferred control to Panama in 1999 under a treaty signed by President Jimmy Carter in 1977. Former President Donald Trump has criticized that decision, calling it a mistake.
The sale follows U.S. concerns over Chinese influence in Panama. In February, Secretary of State Marco Rubio urged Panama’s President José Raúl Mulino to limit China’s role in canal operations or risk consequences from the U.S. Shortly after, Panama withdrew from China’s Belt and Road Initiative, a move that drew criticism from Beijing.
Along with BlackRock, the consortium includes BlackRock’s subsidiary Global Infrastructure Partners and Terminal Investment Limited. BlackRock did not comment beyond a press release announcing the deal. After the announcement, BlackRock’s stock fell by 1.5% in afternoon trading on Tuesday.
