Panamanian Leader Slams Trump’s Claims of Reclaiming Panama Canal as False

Panamanian President Jose Raul Mulino has publicly refuted claims made by U.S. President Donald Trump regarding the United States’ intention to “reclaim” the Panama Canal, calling the assertion lies. Mulino stated, “Once again, President Trump is lying. The Panama Canal is not in the process of recovery.”

Trump’s remarks came during a recent address to U.S. lawmakers, where he announced plans for the U.S. to “reclaim” control of the waterway. He emphasized a deal led by U.S. investment firm BlackRock to acquire a substantial portion of the $22.8 billion ports business from Hong Kong conglomerate CK Hutchison, which manages assets along the canal.

The acquisition will grant the U.S.-led consortium control over critical ports associated with the Panama Canal, amid ongoing concerns from the White House regarding Chinese influence in the region. Following the announcement, CK Hutchison’s stock surged by more than 20%.

“We will be reclaiming the Panama Canal, and we’ve already started doing it,” Trump declared. “Just today, a large American company announced they are buying both ports around the Panama Canal and lots of other things having to do with the Panama Canal and a couple of other canals.”

The deal involves the BlackRock-led consortium acquiring 90% of Panama Ports Company, which has operated the Balboa and Cristobal ports for over two decades. This consortium, which also includes Terminal Investment and Global Infrastructure Partners, will gain control of 43 ports with 199 berths across 23 countries.

CK Hutchison’s stock closed up 21.9%, significantly outperforming the broader Hang Seng Index, which rose by 2.8%. The sale involves CK Hutchison’s 80% stake in Hutchison Ports, valued at $14.21 billion, although the conglomerate is expected to receive more than $19 billion after repaying some shareholder loans.

Goldman Sachs is advising CK Hutchison on the transaction, although the investment bank declined to comment on the deal. The proceeds from the sale are expected to be similar to CK Hutchison’s entire market value in Hong Kong prior to the stock rally.

Co-managing director Frank Sixt emphasized that the transaction is purely commercial and is unrelated to the recent political discourse surrounding the Panama Ports. CK Hutchison has been awaiting a final ruling from the Panama Supreme Court regarding the legal status of its contract to operate the ports, which was deemed “unconstitutional” by the local attorney general.

Under the ownership of billionaire tycoon Li Ka-shing, CK Hutchison has diversified its interests beyond Hong Kong and mainland China, with only about 12% of its revenue now coming from these regions.

Sixt noted that the ports deal was the outcome of a “rapid, discrete but competitive process,” with CK Hutchison receiving multiple bids. Analysts from JP Morgan characterized the sale as a “surprise,” given that most of CK Hutchison’s other ports are not in areas directly affected by Sino-U.S. tensions.

The deal marks a significant strategic shift for CK Hutchison, expected to reduce the contribution of its ports segment from 15% to just 1% of the conglomerate’s earnings before interest, tax, depreciation, and amortization. Meanwhile, the infrastructure segment, currently the largest, will increase its share from 28% to 33%.

Citigroup analysts have indicated that the sale would be “significantly value enhancing,” while UBS analysts noted that the proceeds could potentially shift CK Hutchison into a net cash position, alleviating its net debt burden of HK$138 billion as of June.