Didi Tang and Alex Veiga of the Associated Press report that CK Hutchison Holding is selling its controlling stake in Hutchison Port Holdings, which operates ports near the Panama Canal, to a BlackRock-led consortium for $23 billion. The deal gives the consortium control over 43 ports globally, including Balboa and Cristobal. This move follows concerns about Chinese influence on the critical shipping lane. The transaction, pending Panama’s approval, excludes ports in China. They write:
A Hong Kong-based conglomerate has agreed to sell its controlling stake in a subsidiary that operates ports near the Panama Canal to a consortium including BlackRock Inc., effectively putting the ports under American control after President Donald Trump alleged Chinese interference with the operations of the critical shipping lane. […]
In February, U.S. Secretary of State Marco Rubio urged Panama to reduce Chinese influence over the Panama Canal, with threats of retaliation. Panama withdrew from China’s Belt and Road Initiative, and the U.S. turned its focus to Hutchison Ports, which manages key canal ports. An audit of Hutchison’s 25-year extension raised speculation about a U.S. firm potentially taking over.
The deal will give the BlackRock consortium control over 43 ports in 23 countries, including the ports of Balboa and Cristobal, located at either end of the Panama Canal. Other ports are in Mexico, the Netherlands, Egypt, Australia, Pakistan and elsewhere.
Read more here.
