In a significant move, BlackRock Inc. has agreed to purchase shares in Hutchison Port Holdings and Hutchison Port Group Holdings for $22.8 billion. This acquisition includes a 90% interest in Panama Ports Company, which operates the critical ports of Balboa and Cristobal near the Panama Canal.
Panama formally pulls out of China’s Belt and Road Initiative – CNA.
The deal comes amid heightened concerns over Chinese control of strategic global infrastructure. U.S. Secretary of State Marco Rubio emphasized the need to reduce Chinese influence over the canal during his February visit to Panama. Following Rubio’s visit, Panama decided to exit China’s Belt and Road Initiative, a move that has sparked backlash from Beijing.
The consortium investing alongside BlackRock includes Global Infrastructure Partners and Terminal Investment Limited. Pending the completion of necessary procedures, this acquisition is expected to reshape the landscape of global port operations.
BlackRock $23 billion deal places key Panama ports under U.S. control
Panama’s decision to withdraw from the Belt and Road Initiative marks a significant geopolitical shift. The move responds to U.S. pressure to curb Chinese influence in the region. The Panama Canal, a vital maritime route, has been at the center of this geopolitical power play, with the U.S. and China vying for influence over its operations.
Brace for more US pressure on Chinese investment after Panama Ports sale, analysts warn
This acquisition by BlackRock and its partners underscores the strategic importance of the Panama Canal and the surrounding ports. Given its potential impact on international trade and geopolitical dynamics, global stakeholders will closely watch the deal as it progresses.
