BlackRock-Led Deal Secures Key Panama Canal Ports, Sparks U.S.-Panama Tensions

U.S. President Donald Trump praised a $22.8 billion deal led by BlackRock (NYSE:BLK) to acquire CK Hutchison’s global port assets, including Panama Ports Company, which controls Balboa and Cristobal ports at both ends of the Panama Canal. The move aligns with White House efforts to remove Chinese-linked control over strategic infrastructure.

Trump declared the U.S. was “reclaiming the Panama Canal,” drawing sharp criticism from Panamanian President Jose Raul Mulino, who refuted the claim, affirming the canal remains under Panama’s control.

CK Hutchison, a Hong Kong-listed firm with no direct financial ties to Beijing, said the deal was purely commercial. The acquisition grants the U.S.-backed consortium control of 43 ports in 23 countries.

The transaction lifted CK Hutchison’s stock by over 20%, surpassing Hong Kong’s Hang Seng Index gains. The company is set to receive more than $19 billion after shareholder loan repayments. Goldman Sachs advised CK Hutchison on the deal, with its president, John Waldron, involved in negotiations.

JPMorgan noted the sale as a strategic shift, reducing ports' contribution to CK Hutchison’s earnings from 15% to just 1%, while infrastructure’s share rises to 33%. Citigroup analysts highlighted the deal’s financial upside, as CK Hutchison’s net debt of $17.76 billion could shift to a net cash position post-sale.

While U.S. officials see the acquisition as a security win, tensions with Panama escalate as Mulino asserts national sovereignty over the canal. The U.S. previously controlled the canal until its handover in 1999, a historically sensitive issue for Panamanians.