CK Hutchison to Sell Panama Port Assets at Center of Geopolitical Storm

A BlackRock-led consortium has reached “in principle” agreements to acquire port assets owned by CK Hutchison Holdings Limited at the Panama Canal. The deal, valued at $22.8 billion, includes port terminals in Panama that have been at the center of geopolitical tensions.

The transaction covers two major components: Hutchison Port Holdings’ (“HPH”) 90% interest in Panama Ports Company, which operates the strategically important Balboa and Cristobal ports on opposite ends of the Panama Canal, and CK Hutchison’s 80% controlling interest in companies operating 43 ports with 199 berths across 23 countries. HPH is the port and terminal division of CK Hutchison.

Notably, the sale excludes any ports in China and HPH Trust operations in Hong Kong, Shenzhen, and South China.

This acquisition comes amid heightened scrutiny of Chinese influence over the Panama Canal. During his January 2025 inaugural address, President Trump claimed that “China is operating the canal,” prompting a Senate hearing on China’s growing influence on the Panama Canal.

CK Hutchison, a Hong Kong-based conglomerate with no ownership ties to the Chinese government, has operated the Balboa and Cristóbal ports since 1997, with concessions that were automatically renewed in 2021 for another 25 years.

Importantly, the controversy has centered on the two CK Hutchinson-operated port terminals. The Panama Canal is operated by the Panama Canal Authority, the independent agency of the Panamanian government that is responsible for the operation and management of the canal.

Frank Sixt, Co-Managing Director of CK Hutchison, emphasized that the transaction is “purely commercial in nature and wholly unrelated to recent political news reports concerning the Panama Ports.”

The deal is expected to deliver cash proceeds exceeding $19 billion to CK Hutchison after adjustments for minority interests and loan repayments.

BlackRock CEO Larry Fink described the agreement as “a powerful illustration of BlackRock and GIP’s combined platform and our ability to deliver differentiated investments for clients,” adding that “these world-class ports facilitate global growth”.

The Blackrock-led consortium also includes Global Infrastructure Partners (GIP) and Terminal Investment Limited (TiL). Bayo Ogunlesi, GIP Chairman and CEO, highlighted the consortium’s “substantial expertise in owning and operating ports” and their ambition for the assets “to continue to be world-class ports operators.”

Terminal Investment Limited, part of MSC Group (Mediterranean Shipping Company), brings significant maritime industry experience to the consortium. Diego Aponte, Chairman of TiL and President of MSC Group, expressed confidence in the commercial viability of the investment and noted their “longstanding and terrific relationship” with BlackRock and GIP.

The Panama Ports transaction will proceed separately, pending confirmation by the Panamanian government of the proposed terms. Definitive documentation for this portion is expected to be signed by April 2, 2025. The broader acquisition will proceed on an expedited basis, subject to due diligence, regulatory approvals, and other standard conditions.

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