BlackRock has led a U.S.-backed investor group in acquiring a 90% stake in Panama Ports Company, a move hailed by President Donald Trump as a step toward reclaiming U.S. influence over the Panama Canal. The deal, valued at $22.8 billion, involves the purchase of CK Hutchison’s global ports business, which operates 43 ports in 23 countries, including key assets at the Balboa and Cristobal ports on either end of the Panama Canal.
Trump celebrated the acquisition in a Congressional address, declaring, “My administration will be reclaiming the Panama Canal, and we’ve already started doing it.” The transaction aligns with White House efforts to reduce Chinese economic presence in Latin America, which U.S. officials have described as a security risk.
Strategic Importance of the Deal
Panama’s ports are a critical transit hub, connecting 1,920 ports in 170 countries. More than 12,000 ships pass through the canal annually, and over 75% of that traffic is tied to the United States.
The deal was part of a “rapid, discrete but competitive process,” according to Frank Sixt, co-managing director of CK Hutchison. He insisted that the transaction was purely commercial, denying any political motivations. However, the U.S. State Department, White House, and National Security Council have not commented.
Political and Market Reactions
Trump’s aggressive push to gain control over the canal’s infrastructure has been met with both praise and criticism. Ryan Berg, director of the Americas Program at the Center for Strategic and International Studies, called it a “huge victory” in U.S.-China competition. Meanwhile, U.S. Secretary of State Marco Rubio, who recently visited Panama, has been vocal about reducing China’s influence in the region.
Despite BlackRock’s close ties to Democratic administrations, CEO Larry Fink’s move aligns with Trump’s strategic interests, potentially easing Republican criticism of the firm’s past emphasis on environmental, social, and governance (ESG) investing.
The deal sent CK Hutchison’s stock surging nearly 25%, marking its highest level since August 2023. Analysts noted that the $19 billion in proceeds from the sale exceeded market valuations, positioning CK Hutchison for a strong financial boost.
Legal and Regional Uncertainty
While the sale has been finalized, legal challenges remain. The Panama Supreme Court is reviewing whether CK Hutchison’s port contracts are constitutional, following an earlier ruling from Panama’s attorney general. Meanwhile, Panama’s government has launched an audit of the concession agreements, which could complicate the transition process.
Despite these hurdles, BlackRock’s acquisition marks one of the largest U.S. infrastructure investments in recent years, reinforcing Washington’s strategic influence over global trade routes.
