In a move that follows months of tension between the U.S. and Panama over the Panama Canal, an investment group led by BlackRock, a major American asset management firm, has reached an agreement to acquire two strategic ports located at both ends of the canal. This acquisition also includes over 40 additional ports, all previously owned by the Hong Kong-based company CK Hutchison, valued at approximately $23 billion.
The deal comes amid President Donald Trump’s ongoing criticisms of Panama’s management of the canal, particularly its high tolls. While Trump has other concerns about the canal, his vocal criticism about the fees it charges has been a notable point of contention.
In response to the proposed acquisition, Panama’s President, José Raúl Mulino, appeared to downplay the political ramifications. On social media, he described the deal as “a global transaction, between private companies, motivated by mutual interests,” suggesting that the purchase was a commercial decision rather than one driven by geopolitical concerns.
Adebayo Ogunlesi, the Founding Partner, Chairman, and CEO of Global Infrastructure Partners (GIP), which is a subsidiary of BlackRock, will lead the effort to acquire the important port operations near the Panama Canal. Under Ogunlesi’s leadership, GIP has become the world’s largest independent infrastructure manager, with over $100 billion in assets under management. The firm’s portfolio includes $60 billion in infrastructure equity funds, solidifying GIP’s dominant role in global infrastructure investment.
For BlackRock, the acquisition is part of its broader strategy to diversify beyond its traditional focus on managing stock and bond funds for individual investors. The deal will be executed through GIP, an investment firm that BlackRock acquired for nearly $13 billion last year. GIP specializes in managing infrastructure assets such as ports, airports, and data centers.
The discussions between the BlackRock-led consortium and CK Hutchison executives reportedly began several weeks ago. The Li family, which owns CK Hutchison and is one of Asia’s wealthiest families, had expressed concerns about political pressure, particularly regarding their Panama Canal operations. According to sources familiar with the matter, the family sought to exit the port business, especially their holdings in the canal.
The Panama Canal, a vital shortcut connecting the Pacific and Atlantic Oceans, does not require ships to stop at Panama’s ports to transit the waterway. President Trump has frequently expressed his desire for the U.S. to reclaim control of the canal, which was handed over to Panama in 2000.
Both BlackRock and CK Hutchison issued a joint statement revealing the details of the acquisition. The agreement will see the BlackRock-TiL Consortium acquire 90 percent of the Panama Ports Company, which owns and operates the Balboa and Cristobal ports in Panama. The transaction is contingent on confirmation from the Panamanian government regarding the proposed terms.
As part of the deal, the acquisition of the Panama Ports Company will be fast-tracked, subject to confirmatory due diligence, settlement of final documentation, and necessary regulatory approvals. According to the statement, the total enterprise value of 100 percent of the assets involved in the deal, including the Panama Ports, is set at $22.8 billion.
The companies also agreed in principle on the distribution of proceeds from the transaction, including the allocation between the Panama Ports and other ports involved in the sale. The definitive documentation for the Panama Ports acquisition is expected to be signed by April 2, 2025.
Larry Fink, Chairman and CEO of BlackRock, commented on the deal, emphasizing that it is a strong example of BlackRock’s ability to deliver differentiated investments for clients. He stated, “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.”
Adebayo Ogunlesi, speaking on behalf of GIP, expressed his excitement about the partnership with Terminal Investment Limited (TiL) and MSC, noting the longstanding and productive relationship between the two firms. He stated, “Given GIP’s substantial expertise in owning and operating ports, together with our partners, we can focus on our joint ambition for these assets to continue to be world-class ports operators which are competitive, efficient, commercial and service-focused.”
Diego Aponte, Chairman of TiL and President of MSC Group, added, “Our relationship with Hutchison Ports goes back a long way and is a relationship of mutual respect and friendship. We are very pleased to partner with BlackRock and Global Infrastructure Partners (GIP), with whom we share a longstanding relationship.”
Frank Sixt, Co-Managing Director at CK Hutchison, commented on the process leading to the transaction, emphasizing that it was a competitive process in which numerous bids were received. He highlighted that the transaction valuation was compelling and beneficial to the company’s shareholders. He also made it clear that the deal was purely commercial and had no connection to recent political discussions concerning Panama Ports.
Sixt further explained, “The transaction would be expected to deliver cash proceeds in excess of US$19 billion to our Group. However, it must be noted that the transaction remains subject to confirmatory due diligence, settlement of definitive documents, and compliance with existing shareholder agreements.”
CK Hutchison has operated the Balboa and Cristobal ports since 1997 when Panama granted the company 25-year concessions for the facilities. These concessions were renewed for another 25 years in 2021. BlackRock’s investment group will acquire the companies that own these port concessions.
In recent days, BlackRock executives, including Larry Fink and Adebayo Ogunlesi, reportedly briefed U.S. officials, including President Trump, Treasury Secretary Scott Bessent, and Senator Marco Rubio, about the deal. These discussions were reportedly well-received by the administration, which supported the acquisition.
It was reported that the Li family had specifically sought an American buyer, and according to those familiar with the deal, there were three other bids for the transaction. Frank Sixt stressed that the deal was purely commercial in nature and unrelated to the political situation surrounding the Panama Ports.
This acquisition marks BlackRock’s largest infrastructure deal to date and involves Terminal Investment Limited, which operates ports serviced by the world’s largest container shipping company, Mediterranean Shipping Company (MSC). The deal will add to Terminal Investment’s portfolio, expanding its presence in Europe and Latin America, with a particular focus on the Asia-based ports owned by CK Hutchison.
Trump’s administration has long been critical of the fees imposed by the Panama Canal Authority on shipping companies, with some fees increasing in recent years. The Panamanian agency running the canal has explained that the price hikes were necessary due to factors such as droughts, investment in upgrades, and increased demand for canal services.
Beyond these criticisms, Trump has made numerous statements regarding his desire to retake control of the Panama Canal, suggesting that Chinese influence in the region poses a national security risk. This sentiment has colored much of the discourse surrounding the Panama Canal and has factored into the ongoing discussions about its future and control.
The deal led by BlackRock and Ogunlesi is expected to have significant ramifications for both the global infrastructure market and Panama’s vital port operations. Given the scale of the investment and the global implications of the deal, it is sure to remain a point of interest for both the financial sector and international political observers in the months to come.
