In a $22.8 million deal, BlackRock will acquire two ports, one at each end of the Panama Canal, from Hong Kong-based CK Hutchison Holdings.
The deal is an “agreement in principle” and calls for BlackRock to purchase the ports of Balboa and Cristobal. Additionally, BlackRock is acquiring CK Hutchison’s controlling interest in 43 other ports, including 199 berths across 23 countries, all located outside China and Hong Kong.
The purchase comes after increased pressure from Donald Trump to buy back the canal from foreign investors. “China is operating the Panama Canal. And we didn’t give it to China. We gave it to Panama, and we’re taking it back,” Trump stated in an address in January.
BlackRock’s Chaiman and CEO, Larry Fink told investors, “This agreement is a powerful illustration of BlackRock and GIP’s combined platform and our ability to deliver differentiated investments for clients. These world-class ports facilitate global growth. Through our deep connectivity to organizations like Hutchison and MSC/TIL and governments around the world, we are increasingly the first call for partners seeking patient, long-term capital. We are thrilled our clients can participate in this investment.”
Speaking on behalf of CK Hutchison, Co-Managing Director Mr. Frank Sixt said, “This Transaction is the result of a rapid, discrete but competitive process in which numerous bids and expressions of interest were received… I would like to stress that the Transaction is purely commercial in nature and wholly unrelated to recent political news reports concerning the Panama Ports.”
By CEO NA Editorial Staff
