A consortium of companies led by BlackRock is buying two key ports on the Panama Canal for $23 billion from a Hong Kong-based company after President Donald Trump raised concerns that the strategic waterways are being affected by China.
BlackRock, the world's largest asset manager with an investment portfolio worth $11.5 trillion, has agreed to buy a majority stake from Hong Kong-based CK Hutchison at ports on both sides of the Panama Canal for $22.8 billion. The company announced Tuesday.
The deal would shift the strategic ports of Balboa and Cristobal to American businesses. This is a move that coincides with the Trump administration's concerns over foreign influences near the canal.
Panama holds full sovereignty over the canal itself, but the existence of a port controlled by China has been flagged by US authorities as a potential security risk.
Earlier this month, Panama decided not to renew its participation in China's Belt and Road Initiative (BRI), becoming the first Latin American country to end the program.
President Jose Raul Murino announced the decision after discussions with Secretary of State Marco Rubio, who raised concerns about China's growing influence in the Panama Canal region.
Headed by billionaire CEO Larry Fink, BlackRock explained the takeover to both the Trump administration and Congress, according to people familiar with the debate.
As Beijing expanded its regional presence through state-backed companies, the sales are expected to ease fears about China's role in Panama's infrastructure.
CK Hutchison told the Wall Street Journal that the deal was “inherently purely commercial” and has nothing to do with recent political debates about the Panama Canal.
Trump has expressed strong concerns about the Panama Canal, claiming that China has too much influence in its operation.
In his first speech on January 20th, he declared: “China runs the Panama Canal. And we didn't give it to China. We handed it to Panama and we'll get it back.”
Before taking office, the then president claimed that Panama had charged “exorbitant” fees on American ships, suggesting that this had violated the Treaty of Torijos Carter, which moved the canal from US control to Panama in 1999.
He further states that the canal is “falling in the wrong hands,” hinting at the Chinese influence on the operation.
Trump also shows that military intervention could counter what he considers as a heightened control of the Chinese canal, and could underscore the strategic importance of the US economic security.
His statement sparked a strong response from Panama officials who claimed that the Panama Canal remains under sovereign control and operates independently.
They have repeatedly denied control of foreign countries, particularly by China.
Concerns about China's impact on the canal have been debated in Washington for many years.
Some policymakers argue that Chinese port operators can monitor the movement of US ships and use the facilities for potential military operations.
However, Panama and former US military officials have denied these claims, emphasizing that the port poses no security threats and that the canal remains neutral.
The agreement represents BlackRock's biggest infrastructure acquisition ever, highlighting the increasing driving force behind our private infrastructure investment.
The purchase is being carried out in collaboration with BlackRock's Infrastructure Arm Global Infrastructure Partners (GIP) and Geneva-based Terminal Investment Limited.
Beyond the Panama Canal Port, the consortium will also acquire 43 additional ports from CK Hutchison in 23 countries.
BlackRock's Fink has actively expanded its infrastructure investment strategy, particularly after acquiring GIP in 2023.
GIP manages a vast portfolio of energy, transportation and utility assets, including London Gatwick Airport, US Natural Gas Pipelines and data centers.
If finalized, the BlackRock-led acquisition could strengthen America's influence on one of the world's most important trade routes and mark major geopolitical changes.
The post is being asked for comment from BlackRock and the White House.
