BlackRock Inc. has secured control over key ports near the Panama Canal, stripping away Chinese-linked influence over one of the world’s most crucial shipping routes.
The $23 billion deal, which includes $5 billion in debt, will effectively place the strategic ports under American control—a move long advocated by President Donald Trump and national security hawks concerned about China’s grip on global infrastructure.
The transaction, announced Tuesday, involves Hong Kong-based CK Hutchison Holdings selling its controlling stake in Hutchison Port Holdings and Hutchison Port Group Holdings to a U.S.-led consortium spearheaded by BlackRock, AP reported.
This historic acquisition grants control over 43 ports in 23 countries, including major sites in Mexico, the Netherlands, Egypt, Australia, Pakistan, and Panama’s critical ports of Balboa and Cristobal—the two primary gateways to the Panama Canal.
Fox Business reported:
BlackRock announced the $22.8 billion deal with CK Hutchison’s subsidiary Hutchison Port Holdings, which will see the firm acquire the Panama ports of Cristobal and Balboa, which are located at the Atlantic and Pacific ends of the canal, respectively. It will also acquire Hutchison’s controlling interest in 43 ports in 23 other countries.
The world’s largest asset manager will partner with Terminal Investment Limited (TiL) to operate the ports in concert with the BlackRock subsidiary Global Infrastructure Partners (GIP).
“This agreement is a powerful illustration of BlackRock and GIP’s combined platform and our ability to deliver differentiated investments for clients,” BlackRock CEO Larry Fink said. “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.”
[…]
Frank Sixt, CK Hutchison co-managing director, said the transaction was the “result of a rapid, discrete but competitive process in which numerous bids and expressions of interest were received” and added that the deal should deliver cash proceeds in excess of $19 billion to the group.
“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,” Sixt added.
“China is getting kicked out of Panama and America is winning. Thank you, President Trump. MAGA!” wrote House Foreign Affairs Committee Majority.
China is getting kicked out of Panama and America is winning. Thank you, President Trump. MAGA! https://t.co/y3H9AnLlvy
— House Foreign Affairs Committee Majority (@HouseForeignGOP) March 4, 2025
“Victory for America & our allies. China leverages commercial port operations throughout the Western Hemisphere, including the Panama Canal, to project power, enable surveillance, facilitate trafficking, and pre-position for conflict,” Homeland GOP wrote.
Victory for America & our allies.
China leverages commercial port operations throughout the Western Hemisphere, including the Panama Canal, to project power, enable surveillance, facilitate trafficking, and pre-position for conflict.
More from @RepCarlos & @MatthewKroenig https://t.co/GZqStfqYZj pic.twitter.com/LUafMnUjKL
— House Homeland GOP (@HomelandGOP) March 4, 2025
Donald Trump has warned that the United States could seize back the Panama Canal unless the country agrees to lower its costs and counter Chinese influence.
In a post on Truth Social, the incoming president urged the Panamanian government to start taking care of the canal or face the consequences.
He wrote:
The United States has a vested interest in the secure, efficient, and reliable operation of the Panama Canal, and that was always understood. We would and will NEVER let it fall into the wrong hands! It was not given for the benefit of others, but merely as a token of cooperation with us and Panama.
If the principles, both moral and legal, of this magnanimous gesture of giving are not followed, then we will demand that the Panama Canal be returned to us, in full, and without question. To the Officials of Panama, please be guided accordingly!
Trump later followed up with another post explaining its role preserving America’s economic and national security:
The Panama Canal is considered a VITAL National Asset for the United States, due to its critical role to America’s Economy and National Security. A secure Panama Canal is crucial for U.S. Commerce, and rapid deployment of the Navy, from the Atlantic to the Pacific, and drastically cuts shipping times to U.S. ports.
The United States is the Number One user of the Canal, with over 70 percent of all transits heading to, or from, U.S. ports. Considered one of the Wonders of the Modern World, the Panama Canal opened for business 110 years ago, and was built at HUGE cost to the United States in lives and treasure – 38,000 American men died from infected mosquitos in the jungles during construction.
Teddy Roosevelt was President of the United States at the time of its building, and understood the strength of Naval Power and Trade. When President Jimmy Carter foolishly gave it away, for One Dollar, during his term in Office, it was solely for Panama to manage, not China, or anyone else.
It was likewise not given for Panama to charge the United States, its Navy, and corporations, doing business within our Country, exorbitant prices and rates of passage. Our Navy and Commerce have been treated in a very unfair and injudicious way.
The fees being charged by Panama are ridiculous, especially knowing the extraordinary generosity that has been bestowed to Panama by the U.S. This complete “rip-off” of our Country will immediately stop….
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