Washington (Agencies): A consortium led by BlackRock has acquired two key ports on either side of the Panama Canal, Balboa and Cristobal, from Hong Kong-based CK Hutchinson for $19 billion. The deal, which also includes controlling stakes in 43 other ports across 23 countries, is valued at $22.8 billion.
The acquisition comes amid heightened U.S.-China tensions, with President Donald Trump expressing concerns over Chinese-linked ownership of the ports. Trump has had his sights on the Panama Canal ever since he won the November vote, and recently threatened to use force to restore U.S. control over the strategic waterway.
According to a Bloomberg report, BlackRock CEO Larry Fink pitched the idea to Trump, aligning with BlackRock’s ambition to expand globally and capitalize on fresh profit opportunities. The deal was described as a “very elegant solution” by an unnamed source close to the seller.
The Panama Canal, built by the United States in the early 20th century, remains a vital trade artery linking the Atlantic and Pacific Oceans. Ownership of the canal was transferred to the Panamanian government in 1977 under President Jimmy Carter, with the obligation of maintaining its neutrality.
Despite concerns over neutrality, the acquisition by BlackRock is seen as a strategic move to bolster U.S. influence over the canal, which handles a significant volume of U.S. liquefied natural gas (LNG) exports to Asia. The canal authorities charge a fee for passage, and weather conditions sometimes make navigation challenging.
The deal has sparked political controversy, with Trump touting it as a victory in his address to Congress. The acquisition is expected to reshape Panama’s logistics landscape and boost port infrastructure and competitiveness.