BlackRock and its partners will acquire CK Hutchison’s 90% stake in Panama Ports Company and additional interests in global ports. The deal is valued at $22.8 billion, with final agreements expected by April 2025. This acquisition aims to enhance global operational capabilities for the consortium.
A consortium led by BlackRock has reached an agreement to purchase CK Hutchison Holdings’ 90% stake in Panama Ports Company (PPC), which manages the Balboa and Cristobal ports in Panama. The acquisition also includes CK Hutchison’s 80% controlling interest in various port operating subsidiaries worldwide, amounting to 43 ports with 199 berths across 23 countries. It’s noteworthy that this acquisition plan will occur pending confirmation from the Panamanian government.
The total enterprise value for the HPH Ports Sale Perimeter, which includes the Panama Ports, is set at $22.8 billion. The terms for both the PPC transaction and HPH transaction have been agreed upon in principle; however, they remain subject to the completion of due diligence and necessary regulatory approvals. The definitive agreements are expected to be finalized by April 2, 2025.
BlackRock’s CEO, Larry Fink, emphasized that this transaction underscores their capability to deliver substantial investments globally. He remarked that these ports are crucial for global commerce and expressed enthusiasm for their clients to benefit from this acquisition. Similarly, GIP’s CEO, Bayo Ogunlesi, highlighted the partnership with Terminal Investment Limited and emphasized their expertise in enhancing port operations.
Diego Aponte, chairman of TiL, reflected on their longstanding relationship with Hutchison Ports and the importance of this transaction for future operations. Finally, CK Hutchison’s co-managing director, Frank Sixt, explained that the favorable transaction terms arose from a competitive bidding process and reassured stakeholders of its purely commercial nature, separate from political events affecting Panama.
In summary, the BlackRock-led consortium’s agreement to acquire CK Hutchison’s interests in Panama ports signifies strategic investment in global port operations. With a total enterprise value of $22.8 billion, this investment highlights the consortium’s focus on enhancing operational efficiency and international trade capacity. The anticipated completion of definitive agreements by April 2025, pending regulatory approvals, underscores the ongoing commitment to this significant business endeavor.
Original Source: www.marinelog.com
