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In a landmark agreement valued at $23 billion, BlackRock, along with Global Infrastructure Partners (GIP) and Terminal Investment Limited (TIL), has secured a deal to take over key ports along the Panama Canal.

This agreement, which involves purchasing shares from Hong Kong-based CK Hutchison Holdings, marks a major shift in the ownership structure of these strategic shipping hubs.

CK Hutchison, which has operated these ports for decades, will sell its 80% stake in Hutchison Ports, which runs 43 ports across 23 countries, including the crucial Balboa and Cristobal ports at either end of the Panama Canal, EconomicTimes said

BlackRock and its partners will gain 90% control of Panama Ports Company, the entity that oversees these two vital ports in Panama. The deal is expected to significantly reshape the region's shipping and trade dynamics.

"This agreement is a powerful illustration of BlackRock and GIP's combined platform and our ability to deliver differentiated investments for clients," said Larry Fink, CEO of BlackRock, in a statement.

He highlighted the importance of these world-class ports in driving global trade. The move comes as part of an ongoing effort to secure strategic investments and capitalize on long-term growth opportunities in vital infrastructure assets.

Panama Ports Deal Reflects US Efforts to Limit Chinese Control in Key Trade Route

The deal's timing is critical, as it follows a period of heightened concern in the United States over Chinese influence in the region.

In 2024, former President Donald Trump raised alarms about China's potential control over the Panama Canal, accusing Chinese companies of exploiting their stake in the ports for geopolitical purposes.

US officials, including Senator Ted Cruz and Secretary of State Marco Rubio, voiced concerns about the national security risks posed by foreign involvement in such an important global trade route.

According to CBS, the United States remains the largest user of the Panama Canal, accounting for approximately 70% of traffic passing through the 51-mile waterway.

In response to these security concerns, Panama has worked to reduce Chinese influence in the region. After a visit by Rubio in early 2025, Panama announced its decision to quit China's Belt and Road Initiative, which had been a point of contention.

While Panama retains control over the Canal itself, the US government has been focused on ensuring that foreign-owned ports on either side do not pose a risk to US interests. This latest acquisition by a US-based consortium, therefore, represents a significant shift in both commercial and political terms.

Under the terms of the deal, CK Hutchison is expected to receive approximately $19 billion in cash proceeds. This transaction is seen as a direct response to ongoing pressure from the US government, which has raised alarms over the presence of foreign-owned ports in such a critical location.