In a major strategic move, a consortium of investors headed by BlackRock has agreed to purchase majority stakes in two pivotal port terminals on either side of the Panama Canal, along with a portfolio of other global port assets, for $22.8bn. The deal focuses on the Balboa and Cristóbal terminals, which are vital hubs for container traffic through the canal, handling 40% of all containers crossing the waterway last year.
The transaction comes amid longstanding US concerns that Chinese influence in port operations could jeopardize national security. Former President Donald Trump has previously warned that the Panama Canal, transferred to Panamanian control in 1999, must be shielded from Beijing’s reach. By placing American investors in charge of these critical facilities, the deal is seen as a strategic countermeasure to mitigate potential threats, even though control of the canal itself remains with Panama.
The deal also represents a significant shift for CK Hutchison, the Hong Kong-based conglomerate controlled by the 96-year-old Li Ka-shing. Under mounting pressure from US and Panamanian officials, Hutchison is divesting its port assets while retaining operations in Hong Kong and mainland China. Hutchison’s co-managing director, Frank Sixt, noted that the offer from BlackRock was “too good to turn down” and would yield approximately $19bn in cash after adjusting for minority interests.
American critics have long argued that foreign, particularly Chinese, control of key port infrastructure could be exploited for military purposes. With BlackRock’s acquisition, this risk is expected to be mitigated as US investors gain strategic oversight. The move also underscores a broader trend of multinational divestment from sensitive international assets amid heightened geopolitical tensions.
