A consortium of investors led by BlackRock, a US-based company, has agreed to purchase a majority stake in the Panama Canal’s two ports. The announcement was made by BlackRock on Tuesday, with multiple media outlets reporting on the development. The buying consortium, in addition to BlackRock, includes the company’s infrastructure arm, Global Infrastructure Partners and Terminal Investment Limited, a Geneva-based company.
BlackRock will acquire 90 percent of the Panama Ports Company, the current owner and operator of the two ports, for $22.8 billion. The Panama Ports Company is currently owned by CK Hutchison, a multinational technology company headquartered in Hong Kong. CK Hutchison has also confirmed that it will sell the two ports to a US-based consortium. The deal is expected to close within a 145-day period, according to the statement.
With the acquisition of the two ports, BlackRock will gain control over one of the world’s most important and frequently used trade routes, which includes the Panama Canal.
Prior to the deal, US President Donald Trump had expressed his intention to see the Panama Canal return to US hands, citing concerns over Chinese influence in Panama. The Trump administration had applied significant pressure on the Hong Kong-based company, Hutchison Ports, which manages the key ports at both ends of the canal.
While media attention focused on Trump’s threats, the Trump administration had been in talks with Hutchison Ports, the Hong Kong-based consortium that manages the most important ports at both ends of the canal, in recent weeks. Rumors had been circulating that a US company close to the White House was in the running to make a takeover bid.