The Hong Kong company CK Hutchison Holdings Ltd. decided to sell control of the ports of Balboa and Cristobal, located near the Panama Canal. This occurred after pressure from U.S. President Donald Trump to reduce Chinese influence in the region.
A consortium formed by BlackRock Inc., Global Infrastructure Partners, and Terminal Investment Ltd. has reached a preliminary agreement to acquire 80% of Hutchison Ports, a company that manages 43 ports in 23 nations. The transaction, involving BlackRock-TiL, will provide CK Hutchison with cash proceeds of $19 billion, according to the company announcement.
CK Hutchison confirmed the sale of its operations at the ports of Balboa and Cristobal in Panama to the BlackRock-TiL Consortium. Additionally, the consortium will acquire 90% of Panama Ports Co., the company responsible for operating these two ports. Hutchison Ports emphasized that this was a purely commercial transaction.
In a statement issued on Tuesday, CK Hutchison indicated that the sale of these port units will provide significant economic benefits to the company. The multinational CK Hutchison, under pressure from Trump, opted to sell its assets in Panama, while the BlackRock-TiL Consortium will ensure the operation of the Balboa and Cristobal ports in the future.
