BlackRock-Led Consortium Seals Deal for Majority Stake in Panama Ports Business

Posting this as an ICYMI on the Panama Canal.

A U.S.-led consortium, headed by BlackRock, has struck a deal to acquire a majority stake in CK Hutchison’s $22.8 billion ports business, including key assets along the Panama Canal. The deal will give the consortium a 90% stake in Panama Ports Company, which has operated the Balboa and Cristobal ports for over two decades.

Balboa and Cristobal ports are located at opposite ends of the Panama Canal:

• Balboa Port is situated on the Pacific Ocean side, near Panama City. It serves as the main port handling cargo traffic entering and exiting the canal from the Pacific.
• Cristobal Port is located on the Atlantic Ocean (Caribbean Sea) side, near Colón. It functions as a key gateway for vessels approaching the canal from the Atlantic.

Together, these ports play a crucial role in managing containerized and bulk cargo passing through the Panama Canal, making them strategically important for global trade.

Trump hailed the acquisition as a move to “reclaim” the Panama Canal from Chinese influence, though Panamanian President Jose Raul Mulino swiftly dismissed Trump’s claim, reaffirming that the canal remains under Panama’s control.

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CK Hutchison is a Hong Kong-based conglomerate. While not financially tied to the Chinese government, American officials have previously raised concerns over the presence of Hong Kong-based companies in strategic infrastructure.

This article was written by Eamonn Sheridan at www.forexlive.com.