A US-led investment group, headed by BlackRock, has agreed to acquire a majority stake in CK Hutchison’s $22.8 billion global ports business, including key port operations along the Panama Canal.
The deal, which has drawn international attention, will see the consortium gain control of 90% of Panama Ports Company, which operates the Balboa and Cristóbal ports—strategic gateways at either end of the canal.
The agreement comes as the White House has called for reducing what it describes as Chinese ownership of critical infrastructure. Former President Donald Trump praised the acquisition, stating:
“My administration will be reclaiming the Panama Canal, and we’ve already started doing it.”
CK Hutchison, a Hong Kong-based conglomerate, emphasized that the sale was a commercial decision and not influenced by political factors.
“The transaction is purely commercial in nature and wholly unrelated to recent political news reports concerning the Panama Ports,” said Frank Sixt, co-managing director of CK Hutchison.
However, financial analysts have pointed out that the timing of the deal aligns with geopolitical developments, particularly US-China tensions over strategic infrastructure. JPMorgan described the sale as a “surprise” and “opportunistic,” given that CK Hutchison’s other port assets are not primarily located in geopolitically sensitive areas.
The sale includes 80% of CK Hutchison’s port operations, spanning 43 ports across 23 countries, with the consortium set to take ownership of assets beyond just the Panama Canal. The remaining 20% of the business will continue to be held by Singapore’s PSA International.
Following the announcement, CK Hutchison’s stock surged 21.9% in Hong Kong, significantly outperforming the broader Hang Seng Index, which rose 2.8%. Analysts believe that the $19 billion in proceeds from the sale will strengthen the conglomerate’s financial position, potentially allowing it to pursue new investments.
UBS analysts noted that the sale proceeds could reduce CK Hutchison’s net debt position, which stood at approximately $17.76 billion in June. Citigroup analysts added that the valuation exceeded initial estimates, describing the sale as “significantly value-enhancing” for the company.
While Trump’s comments framed the deal as a strategic win for the US, the acquisition does not transfer ownership of the canal itself, which remains under the control of the Panama Canal Authority. However, the US consortium’s involvement in Panama’s port operations could signal a shift in investment priorities amid growing concerns over foreign influence in global trade routes.
For BlackRock, securing a high-profile transaction with the implicit backing of the US administration may help strengthen its standing in Washington. The firm has faced scrutiny from some Republican lawmakers over its investment policies, and the deal could bolster its position as a key player in US infrastructure investments.
The acquisition marks a significant reshaping of global port ownership, with a US-led consortium gaining greater influence over one of the world’s most important trade corridors. Meanwhile, CK Hutchison’s decision to divest from the ports sector aligns with its long-term strategy of diversifying beyond Hong Kong and mainland China, where geopolitical and economic uncertainties continue to evolve.
With input from Bloomberg, Reuters, and the Financial Times.
