In a major win for President Donald Trump, a consortium of U.S. investors—led by American asset manager BlackRock—has reportedly struck a $22.8 billion deal buying majority stakes in ports on both sides of the Panama Canal from Hong Kong-based conglomerate CK Hutchinson.
This acquisition would bring these two key ports, which are situated at either end of the crucial shipping lane, under American corporate ownership following pressure Trump put on Panama to limit Chinese operations there.
Panama Canal ports sold to BlackRock in victory for Trump https://t.co/nyOIux6BdI
— Financial Times (@FT) March 4, 2025
BlackRock has briefed the Trump administration and Congress on the agreement, a source told The Wall Street Journal.
Trump has repeatedly raised the alarm about China's influence over the canal. "China is operating the Panama Canal, and we didn't give it to China. We gave it to Panama, and we're taking it back," Trump said in his inaugural address, referring to a Jimmy Carter-era treaty that had handed control of the canal to Panama, though the U.S. built it.
Now, in the wake of Trump's threats to retake the waterway, the Hong Kong firm is selling its stake in the critical Panama Canal entryways.
CK Hutchison had held 90 percent control of the Panama Ports Company, which owns and operates the ports of Balboa and Cristobal on each end of the canal. Chinese infrastructure has been built up along the canal, causing concerns about how China could use the ports for military purposes and to monitor the movement of ships through the passage.
Last month, U.S. Secretary of State Marco Rubio visited Panama and told Panama's President José Raúl Mulino that they had to reduce China's sway over the canal's operations or potentially face retaliation from the U.S.
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"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," said CK Hutchison co-managing director Frank Sixt in a statement. However, the CK Hutchinson spokesperson noted that the agreement was the result of "a rapid, discrete but competitive process" in which "numerous bids and expressions of interest were received."
Panama's government was previously weighing whether to cancel the company's contract, per Bloomberg, and had also initiated an audit.
This would be the largest-ever infrastructure acquisition for BlackRock.
According to Axios, BlackRock didn't give an estimated closing date likely due to how many different regulators will have to weigh in. Associated Press warns that the transaction must be approved by Panama's government. The arrangement is expected to be formally signed by April 2.
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