BlackRock has agreed to buy two Panama Canal ports from CK Hutchison for $22.8 billion amid concerns over Chinese ownership. The acquisition aims to alleviate Trump’s worries about foreign control of the canal, which is crucial for global trade. The Panama Canal significantly supports Panama’s economy, generating substantial annual revenues.
American asset management giant BlackRock has reached an agreement to acquire two ports located at each end of the Panama Canal from Hong Kong’s CK Hutchison. This move comes in the context of President Trump’s previous criticisms regarding foreign ownership of the canal and his desire to “take back” control from Panama, which gained control over the canal in 1999 through a treaty with the United States.
The acquisition is valued at $22.8 billion in an “agreement in principle” and includes the ports of Balboa and Cristobal. BlackRock’s consortium is also set to acquire CK Hutchison’s interests in an additional 43 ports across 23 countries, excluding those in China and Hong Kong. BlackRock CEO Larry Fink emphasized the investment’s potential to facilitate global growth.
BlackRock’s assets total $11.6 trillion, representing a significant portion of the U.S. economy. The firm’s holdings include substantial stakes in major companies such as Walmart, Apple, Amazon, Microsoft, and Alphabet. Following the sale announcement, CK Hutchison expects to gain over $19 billion, driving its stock up by more than 20%.
The Panama Canal, completed in 1914, has played a crucial role in international trade and U.S. military operations, accounting for approximately 4% of global maritime trade. In 2024, the canal generated nearly $5 billion in revenue, contributing significantly to Panama’s economy, as canal-related businesses represent over 23.6% of the nation’s annual income.
Despite Trump’s concerns, the Panama Canal has been operated by Panamanian authorities since its 1999 handover, not by Chinese interests. The White House has yet to comment on BlackRock’s purchase, although it may help alleviate Trump’s apprehensions about Chinese influence.
National security adviser Mike Waltz highlighted ongoing negotiations between the U.S. administration and Panama regarding port operations, while Trump and his officials continue to press for changes, including the elimination of transit fees for American vessels. Marco Rubio echoed these sentiments during his visit, advocating for no fees for U.S. ships navigating the canal.
BlackRock’s acquisition of key Panama Canal ports marks a significant investment that aligns with efforts to mitigate foreign control concerns. The deal could potentially ease tensions concerning Chinese influence while fortifying BlackRock’s global investment position. The Panama Canal remains vital for international trade and the U.S. economy, contributing significantly to Panama’s national revenue.
Original Source: 6abc.com
