A consortium led by BlackRock Inc. has agreed to buy 90% stakes in two key ports along the Panama Canal for $23 billion, marking a significant shift in control of the critical shipping lane.
The Hong Kong-based conglomerate CK Hutchison Holding announced that it will sell its shares in Hutchison Port Holdings and Hutchison Port Group Holdings to the BlackRock consortium. The deal gives BlackRock control over 43 ports across 23 countries, including major ports along the Panama Canal.
US President Donald Trump has long claimed that Chinese companies have taken control of the canal’s operations, prompting the US administration to target Hutchison Ports, which manages the canal’s key ports at either end. While Trump’s threats to retake control of the canal received most attention, his administration focused on Hutchison Ports as a key target.
The deal is part of an ongoing effort by the US to reduce its reliance on Chinese companies operating in the region. The US is the Panama Canal’s largest user, with about 70% of shipping traffic passing through it. China is its second-largest user.
The BlackRock consortium will acquire Hutchison Ports, a company that operates the ports of Balboa and Cristobal in Panama, after an audit looking at their operations was already underway. The deal marks a significant victory for Trump, who had vowed to reclaim control of the canal.
Source: https://www.cbsnews.com/news/blackrock-panama-canal-deal-ck-hutchison-trump