In a major move that underscores the shifting landscape of global infrastructure investment, American asset management giant BlackRock has announced its agreement to acquire two key ports at either end of the Panama Canal from Hong Kong-based CK Hutchison for approximately $23 billion. This deal is part of a broader acquisition involving over 40 additional ports worldwide, marking a significant expansion of BlackRock’s footprint in global trade and logistics.
The acquisition comes months after former U.S. President Donald Trump repeatedly criticized Panama over the management and pricing of its most valuable asset—the Panama Canal. While Trump has long expressed concerns over toll rates charged by the canal, this development highlights the increasing geopolitical and economic interests tied to the strategic waterway.
Panama’s Stance on the Acquisition
Despite potential geopolitical implications, Panamanian President José Raúl Mulino has sought to downplay the significance of the deal from a sovereignty perspective. In a social media post, he described the transaction as "a global transaction, between private companies, motivated by mutual interests." His statement suggests that Panama sees the acquisition as a commercial decision rather than a strategic shift in control over the canal.
Adebayo Ogunlesi to Spearhead BlackRock’s Port Expansion
A key figure in the deal is Adebayo Ogunlesi, the Founding Partner, Chairman, and CEO of Global Infrastructure Partners (GIP), a BlackRock subsidiary. Ogunlesi will lead the acquisition and oversee the port operations through GIP in partnership with Terminal Investment Limited (TIL) and other strategic investors.
Under Ogunlesi’s leadership, GIP has grown into the world’s largest independent infrastructure manager, with over $100 billion in assets under management. Of this, infrastructure equity funds alone make up approximately $60 billion. His proven track record in infrastructure investment further solidifies BlackRock’s ambition to dominate this space.
BlackRock’s Strategic Expansion Beyond Traditional Asset Management
For BlackRock, the acquisition is yet another indication of its evolving business strategy. Historically known for managing trillions of dollars in stock and bond funds for everyday investors, BlackRock has increasingly sought to diversify its portfolio into infrastructure investments. The acquisition of GIP last year for nearly $13 billion provided the firm with access to critical infrastructure assets such as ports, airports, and data centers.
With the latest deal, BlackRock is positioning itself as a major player in global trade, ensuring long-term returns for its investors while also securing a stake in a key segment of international shipping and logistics.
CK Hutchison Under Political Pressure to Exit Panama Ports
According to reports from The New York Times, the decision by CK Hutchison to divest its Panama port holdings was influenced by mounting political pressure. The company, owned by Hong Kong’s influential Li family, has faced increasing scrutiny over its control of strategic assets, particularly in politically sensitive regions like the Panama Canal. The ongoing tensions surrounding Chinese investments in critical infrastructure likely played a role in the Li family's decision to exit the ports business.
The Significance of the Panama Canal in Global Trade
The Panama Canal serves as a crucial maritime shortcut, linking the Pacific and Atlantic Oceans and facilitating global trade. While vessels traversing the canal do not necessarily need to stop at Panama’s ports, the infrastructure surrounding the canal remains integral to its operation. Trump has previously expressed a desire for the United States to regain control of the canal, which was officially handed over to Panama in 2000.
Details of the Agreement Between BlackRock and CK Hutchison
In a joint statement obtained by THISDAY, both BlackRock and CK Hutchison confirmed that the deal includes a 90% interest in the Panama Ports Company, which operates the Balboa and Cristobal ports in Panama. The agreement is contingent on final confirmation from the Panamanian government and regulatory approvals.
According to the statement:
- "The transaction will proceed separately on confirmation by the Government of Panama of the proposed terms of the purchase and sale. Acquisition of the HPH Ports Sale Perimeter will proceed on an expedited basis subject to the BlackRock-TiL Consortium conducting normal and usual confirmatory due diligence, settlement of definitive documentation, and receipt of necessary regulatory approvals."
- "The aggregate enterprise value for 100% of HPH Ports Sale Perimeter, including the Panama Ports, has been agreed at $22.8 billion. The allocation of transaction proceeds between the PPC Transaction and the HPH Transaction has also been agreed in principle."
- "Fundamental and essential terms of both transactions have been agreed in principle, subject to definitive documentation. The PPC Transaction’s definitive documentation is expected to be signed on or before April 2, 2025."
- "Pending the signing of the definitive documents, CK Hutchison and HPH have entered into exclusive negotiation and non-disclosure arrangements with the BlackRock-TiL Consortium, which will be given full access to information and documentation for confirmatory due diligence."
BlackRock’s Leadership Excited About the Acquisition
Speaking on behalf of BlackRock, Chairman and CEO Larry Fink expressed enthusiasm for the deal, highlighting its strategic value to global trade and investment.
"This agreement is a powerful illustration of BlackRock and GIP’s combined platform and our ability to deliver differentiated investments for clients," Fink stated. "These world-class ports facilitate global growth. Through our deep connectivity with organizations like Hutchison and MSC/TIL and our collaboration with governments worldwide, we are increasingly the first call for partners seeking patient, long-term capital. We are thrilled our clients can participate in this investment."
GIP Chairman and CEO Adebayo Ogunlesi emphasized the significance of the collaboration, stating, "We are delighted to partner with TiL and MSC, with whom we have a longstanding and productive relationship, to make this acquisition. Given GIP’s extensive experience in port ownership and operations, alongside our partners, we aim to maintain these assets as world-class port operators that are competitive, efficient, and service-focused."
Diego Aponte, Chairman of TiL and President of MSC Group, echoed this sentiment, noting the enduring relationship between TiL and Hutchison Ports. "We have shared a relationship of mutual respect and friendship for many years. Partnering with BlackRock and GIP, whom we have long-standing ties with, further strengthens our strategic vision. We hold the Hutchison Ports management team in high regard and look forward to welcoming them into our broader network once the transaction is finalized. We believe this investment in Hutchison Ports is commercially viable and aligns with our industry focus."
The Competitive Acquisition Process
CK Hutchison, the parent company of Hutchison Ports Holdings, described the transaction as the outcome of a rapid yet competitive bidding process. Co-Managing Director Frank Sixt detailed the financial impact, stating, "This transaction was highly competitive, attracting numerous bids and expressions of interest. The agreed valuation is compelling and in the best interest of our shareholders. After adjusting for minority interests and repayment of certain shareholder loans, the deal is expected to generate cash proceeds exceeding US$19 billion for our group."
Sixt also clarified that the deal is strictly commercial and not influenced by political developments, particularly regarding the Panama Ports. "This transaction is unrelated to recent political discussions concerning the Panama Ports. However, it remains subject to confirmatory due diligence, finalization of documentation, customary completion procedures, and compliance with shareholder agreements."
Strategic Significance and Political Context
CK Hutchison has operated the Balboa and Cristóbal ports in Panama since 1997, when it secured a 25-year concession, later renewed for another 25 years in 2021. As part of the deal, BlackRock will acquire the companies holding these port concessions.
In recent days, BlackRock executives, including CEO Laurence D. Fink and board member Adebayo Ogunlesi, briefed U.S. President Donald Trump, Treasury Secretary Scott Bessent, Secretary of State Marco Rubio, and other officials on the deal. According to sources familiar with the discussions, the administration has expressed support for the transaction.
The Li family, which controls CK Hutchison, specifically sought an American buyer, according to individuals briefed on the discussions. Reports indicate that three other bids were submitted for the acquisition.
This acquisition represents BlackRock’s largest infrastructure deal to date. Terminal Investment Limited, which operates ports linked to Mediterranean Shipping Company—the world’s largest container shipping firm—sees this as an opportunity to expand its footprint in Europe and Latin America. Additionally, the buyers have expressed strong interest in Hutchison’s port assets in Asia.
Implications for the Panama Canal
The transaction comes amid heightened scrutiny of the Panama Canal’s increasing fees for shipping companies. President Trump has criticized these fees, attributing them to drought conditions, infrastructure investments, and growing demand. He has also raised concerns about Chinese influence in the region, suggesting that it poses a national security risk and has advocated for the U.S. to reclaim control of the canal and its surrounding areas.
Conclusion
BlackRock’s acquisition of the Panama Canal ports marks a pivotal moment in global infrastructure investment. As geopolitical and economic interests continue to shape the control of critical assets, this deal underscores the growing influence of private capital in international trade. While Panama seeks to frame the acquisition as a commercial transaction, the broader implications—ranging from U.S.-China tensions to global shipping dynamics—are likely to unfold in the years to come.