A consortium led by U.S. investment firm BlackRock, alongside Global Infrastructure Partners (GIP) and Terminal Investment Limited (TIL), a subsidiary of the Swiss-based Mediterranean Shipping Company (MSC), has agreed to acquire a majority stake in the $22.8 billion ports business of Hong Kong conglomerate CK Hutchison Holdings. The deal includes the purchase of 90% of Panama Ports Company, which operates the Balboa and Cristobal ports at either end of the Panama Canal, as well as an 80% stake in Hutchison Ports, which manages 43 ports across 23 countries.
The transaction, valued at $17.5 billion, marks one of the largest port acquisitions in recent history and has sparked significant political and economic interest. U.S. President Donald Trump hailed the deal, stating that it aligns with his administration’s efforts to reclaim strategic assets in the region. “My administration will be reclaiming the Panama Canal, and we’ve already started doing it,” Trump told the U.S. Congress. However, Panamanian President José Raúl Mulino dismissed Trump’s claims, asserting that the Panama Canal remains under Panamanian sovereignty and control.
The deal has raised geopolitical tensions, as the U.S. has expressed concerns over Chinese influence in the region. CK Hutchison, a publicly listed Hong Kong company, is not financially tied to the Chinese government, but its ownership of key ports along the Panama Canal had drawn scrutiny from U.S. officials. The consortium’s acquisition of these assets is seen as a move to reduce perceived Chinese influence in the strategic waterway, which handles over 12,000 ships annually and connects 1,920 ports across 170 countries. More than 75% of vessels passing through the canal originate in or are bound for the United States.
The acquisition has also sparked debate in Panama, where the U.S. controlled the canal until 1999 under treaties signed in 1977. The deal comes amid ongoing legal challenges in Panama, where the Supreme Court is reviewing the constitutionality of CK Hutchison’s government contract to operate the ports. Despite these challenges, the consortium has emphasized the commercial nature of the transaction, with CK Hutchison co-managing director Frank Sixt stating that the deal was the result of a “rapid, discrete but competitive process.”
The transaction has been met with enthusiasm in financial markets, with CK Hutchison’s stock surging over 20% following the announcement. The proceeds from the sale are expected to significantly reduce the conglomerate’s net debt, potentially placing it in a net cash position.
This deal underscores the growing importance of global trade routes and the strategic value of port infrastructure, particularly in regions like the Panama Canal, which remains a critical artery for international commerce. It also highlights the increasing role of private investment firms like BlackRock and GIP in shaping the future of global infrastructure.