Hong Kong Firm Sells Stake in Panama Canal Ports to BlackRock-Led Consortium

A Hong Kong-based company, CK Hutchison Holding, has agreed to sell the majority of its stake in two significant ports on the Panama Canal to a consortium led by the U.S. investment firm BlackRock. The deal, valued at $22.8 billion, comes amid heightened scrutiny from U.S. officials, particularly President Donald Trump, who has expressed concerns about Chinese control over the vital shipping route.

CK Hutchison, which operates ports at both the Atlantic and Pacific entrances to the canal, has held these interests since 1997. While the company is not owned by the Chinese government, its headquarters in Hong Kong means it operates under Chinese financial regulations. The transaction includes a total of 43 ports across 23 countries, but it requires approval from the Panamanian government to proceed.

The Panama Canal, which spans 82 km across Central America, serves as the primary link between the Atlantic and Pacific Oceans, accommodating approximately 14,000 ships each year. These vessels include container ships transporting a variety of goods, from cars to natural gas, as well as military ships. The canal was constructed in the early 1900s, with the United States maintaining control over the canal zone until 1977, when treaties began to return control to Panama. Panama assumed full control in 1999.

Trump has made several arguments advocating for renewed U.S. control over the canal, labeling Chinese influence as a national security threat. He has cited the U.S. investment in the canal’s initial construction as justification for reclaiming oversight, as well as concerns that American ships are charged excessively for using the waterway. During a visit to Panama in February, U.S. Secretary of State Marco Rubio called for “immediate changes” regarding what he termed Chinese “influence and control” over the canal.

However, the Panamanian government has firmly rejected U.S. claims, with President Jose Raul Mulino asserting that the canal “is and will remain” under Panama’s jurisdiction.

In response to the sale, Frank Sixt, co-managing director of CK Hutchison, emphasized that the transaction is “purely commercial in nature” and is unrelated to recent political discussions surrounding the Panama Ports.

The consortium acquiring the ports also includes Terminal Investment Limited, a Swiss company, further expanding BlackRock’s extensive portfolio as one of the world’s largest asset management firms.