BlackRock Strikes $22.8B Deal to Buy Two Panama Canal Ports

BlackRock announced a $22.8 billion deal with CK Hutchison’s subsidiary Hutchison Port Holdings, to acquire a 90% stake in Panama Ports Company, which runs the Cristobal and Balboa ports at the Atlantic and Pacific ends of the Panama Canal, respectively. It will also acquire Hutchison’s controlling interest in 43 ports in 23 other countries, covering 199 berths.

The world’s largest asset manager with $11 trillion in assets, will partner with Terminal Investment Limited (TiL) to run the massive port network with BlackRock’s subsidiary Global Infrastructure Partners (GIP).

The move comes amid persistent U.S. concerns about foreign sway – particularly Chinese – over the canal. BlackRock has briefed both the Trump administration and Congress on the deal, signaling its alignment with U.S. strategic interests.

“This agreement is a powerful illustration of BlackRock and GIP’s combined platform and our ability to deliver differentiated investments for clients,” BlackRock CEO Larry Fink said. “These world-class ports facilitate global growth.”

Frank Sixt, Hong Kong-based CK Hutchison co-managing director, said the transaction was the “result of a rapid, discrete but competitive process in which numerous bids and expressions of interest were received” and added that the deal should deliver cash proceeds of more than $19 billion to the group.