BlackRock is buying two major ports on the Panama Canal from their Hong Kong-based owner Hutchison in a huge $22.8bn deal, The deal came after US President Donald Trump put pressure over alleged Chinese influence at the waterway.
The agreement was reached alongside a deal in principle for a consortium led by BlackRock to acquire units that hold 80% of the Hutchison Ports group, which operates 43 ports in 23 countries, Under this agreement, the port’s Hong Kong-based owner CK Hutchison would sell the business to a consortium including BlackRock, Global Infrastructure Partners and Terminal Investment Limited, according to a company statement filing on Tuesday.
Why BlackRock is buying Panama ports?
US President Donald Trump raised concerns several times during his presidential campaign and in his days in the Oval office since he took charge as president. He was concerned that China may influence the movement of goods through the Panama Canal, so BlackRock buying control of this port is a big win for him.
Apart from the US president, several of his other key officials also raised this issue, In Jan, US Senator Ted Cruz, the Republican chair of the Senate Committee on Commerce, Science and Transportation, raised concerns that China could exploit or block passage through the canal and that the ports “give China ready observation posts” to take action. “This situation, I believe, posts acute risks for U.S. national security,” Cruz said.
US Secretary of State Marco Rubio visited Panama in early February and told President José Raúl Mulino that Panama had to reduce Chinese influence over the canal or face potential retaliation from the United States. Mulino rejected the idea that China had any control over canal operations.
The deal will relieve pressure on Panama Canal President Jose Raul Mulino, who has been attempting to ward off Trump’s designs on control of the Panama Canal, which was handed over to the local government in 1999. Trump has argued without evidence that China has taken over the waterway and that the US was paying too much for the passage of government ships.
No immediate comments from the White House and Panama’s presidential office, but the Trump administration and members of the US Congress were briefed on the agreement, according to a person familiar with the matter.
CK Hutchison said it expected to receive cash over $19bn from the deal, which includes repayment of some shareholder loans. CK Hutchison’s market capitalization is HK$148bn ($19bn). 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.
Controlled by Hong Kong’s richest man, Li Ka-shing, and his family, CK Hutchison has a portfolio of ports, retail, telecoms, and other infrastructure. Port operations made up around 9 percent of CK Hutchison’s total revenue of HK$461.6bn in 2023.
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About BlackRock
BlackRock is one of the world’s leading providers of investment, advisory, and risk management solutions. The publicly traded company has a market capitalization of over $146.85 billion as of March 4, 2025. BlackRock provides investment and technology services to institutional and retail clients.
- BlackRock is one of the world’s largest investment management companies by AUM.
- The company operates as a single business segment.
- The firm derives most of its revenue from investment advisory and administration fees.
- BlackRock’s competitors include The Vanguard Group, State Street Corp., and T. Rowe Price Group Inc.
As of January 2025, BlackRock’s assets under management (AUM) was $11.6 trillion. This makes BlackRock the largest asset manager in the world.
After the news, BlackRock’s stock fell more than 2% and is now trading at $943.
