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By Jesus Mesa
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During his joint address to Congress on Monday, President Donald Trump declared victory over the BlackRock-led acquisition of two key ports along the Panama Canal, marking a significant shift in control over a critical international trade route.
The $23 billion deal, announced by Hong Kong-based CK Hutchison Holdings, transfers control of the Balboa and Cristobal ports to a consortium led by BlackRock, Global Infrastructure Partners, and Terminal Investment Limited.
"Just today, a large American company announced they are buying both ports around the Panama Canal and lots of other things having to do with the Panama Canal and a couple of other canals," Trump said Tuesday, reinforcing his administration's push to curb Chinese influence in global infrastructure projects.
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"The Panama Canal was built by Americans for Americans, not for others. But others could use it," he added.
While CK Hutchison and Panama's President José Raúl Mulino have insisted that the transaction was a private business matter, the deal comes amid increasing U.S. pressure on Panama to reduce Chinese economic influence.
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The Context
The deal follows increasing pressure from Washington to curb Chinese economic involvement in strategic infrastructure projects. In February, U.S. Secretary of State Marco Rubio traveled to Panama, urging the country to distance itself from Beijing. Shortly afterward, Panama withdrew from China's Belt and Road Initiative.
Senator Ted Cruz, a Texas Republican, has raised concerns about foreign control over the canal's key ports, arguing that China could use its position to restrict or monitor global trade flows.
"This situation, I believe, poses acute risks for U.S. national security," Cruz said earlier this year. The United States is the canal's largest user, accounting for about 70 percent of all traffic.
The U.S. built the canal in the early 1900s as it looked for ways to facilitate the transit of commercial and military vessels between its coasts. Washington relinquished control of the waterway to Panama on December 31, 1999, under a treaty signed in 1977 by President Jimmy Carter. Trump has said that Carter "foolishly" gave the canal away.
Details of the Deal
The agreement sees CK Hutchison Holdings selling its interests in ports across 23 countries, including the Balboa and Cristobal ports on either end of the Panama Canal. A consortium led by BlackRock, Global Infrastructure Partners, and Terminal Investment Limited will take over the assets.
While CK Hutchison dismissed suggestions that the sale was politically driven, the company faced regulatory scrutiny. Panama's attorney general had called its port contract "unconstitutional." An audit was already underway before the deal was announced.
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The $23 billion sale provides the Hong Kong-based conglomerate with nearly $19 billion in cash, equivalent to its entire market value, and a way to exit the mounting geopolitical tensions.
For BlackRock, the deal is part of a broader push into global infrastructure investment. The firm expects the acquired ports to generate about $1.7 billion in annual earnings before interest, taxes, depreciation, and amortization.
What People Are Saying
U.S. President Donald Trump, in his joint address to Congress on Tuesday: "To further enhance our national security, my administration will be reclaiming the Panama Canal, and we've already started doing it."
Panama President José Raúl Mulino, on X after Trump's speech: "Once again, President Trump is lying. The Panama Canal is not in the process of recovery. I reject, on behalf of Panama and all Panamanians, this new affront to the truth and to our dignity as a nation."
Larry Fink, BlackRock CEO, framed the acquisition as an expansion of the company's global footprint: "These world-class ports facilitate global growth."
Frank Sixt, co-managing director of CK Hutchison, in a statement: "I would like to stress that the transaction is purely commercial in nature and wholly unrelated to recent political news reports concerning the Panama Ports."
What Happens Next
The transaction must be approved by Panama's government. It does not include an interest in a trust that operates ports in Hong Kong, Shenzhen, South China, or any other ports in China.
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