The Hong Kong-based conglomerate, CK Hutchison Holdings Ltd., has agreed to sell control of a unit that operates ports near the Panama Canal. The company operated the ports in Balboa and Cristóbal under a concession that has been in place since 1997 and extended until 2047 in 2021. The acquisition of these ports will require government approval, according to BlackRock.
BlackRock Inc. and its Global Infrastructure Partners unit, along with the port division of Mediterranean Shipping Co., will also acquire 90 percent of Panama Ports Co., which manages the two entries in Balboa and Cristóbal. The transaction, which represents the largest infrastructure deal in BlackRock's history, is estimated to be around $19 billion in cash revenue for CK Hutchison.
According to a source close to the matter, the Trump administration and members of the United States Congress were informed about the deal. BlackRock's shares fell by 3.1 percent following the news, affected by the ongoing trade war. CK Hutchison's American depositary receipts, on the other hand, rose by 6.2 percent.
Larry Fink, CEO of BlackRock, explained in a statement that this acquisition is a demonstration of the group's ability to provide differentiated investments to its clients. On the other hand, experts point out that the deal could relieve pressure on Panamanian President José Raúl Mulino, who has been trying to resist Trump's interests regarding control of the Panama Canal, transferred to the local government in 1999.
