Hong Kong billionaire to sell Panama Canal ports to U.S. firm

A Hong Kong-based company has agreed to sell the majority of its stake in two key Panama Canal ports to a consortium led by U.S. investment firm BlackRock.

The sale follows weeks of criticism from former U.S. President Donald Trump, who claimed the canal was under Chinese control and suggested the U.S. should take over the vital shipping route.

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CK Hutchison to Sell Canal Ports in $22.8 Billion Deal

CK Hutchison Holdings, through a subsidiary, operates ports at both the Atlantic and Pacific entrances of the canal. On Tuesday, the company announced plans to sell its interests as part of a $22.8 billion (£17.8 billion) deal.

Founded by Hong Kong billionaire Li Ka-shing, CK Hutchison is not owned by the Chinese government but operates under Hong Kong’s financial regulations. The company has managed the ports since 1997.

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Global Port Deal Awaits Panama’s Approval

The deal includes a total of 43 ports across 23 countries, including the two canal terminals, and is subject to approval by the Panamanian government.

Stretching 51 miles (82 km) across Central America, the Panama Canal is a crucial link between the Atlantic and Pacific oceans. Approximately 14,000 ships pass through annually, including cargo ships transporting vehicles, natural gas, and other goods, as well as military vessels.

Constructed in the early 1900s, the canal remained under U.S. control until 1977, when treaties initiated a gradual handover to Panama. Full control was transferred to Panama in 1999 after a period of joint administration.

Trump has advocated for reclaiming control over the canal, citing national security concerns, the U.S.’s original investment in its construction, and what he considers excessive fees for U.S. ships.

During a visit to Panama in February, U.S. Secretary of State Marco Rubio urged the country to make “immediate changes” regarding what he described as China’s “influence and control” over the canal.

Panama’s government dismissed these concerns, with President Jose Raul Mulino asserting that the canal “is and will remain” under Panamanian sovereignty.

In a statement on the sale, CK Hutchison’s co-managing director, Frank Sixt, emphasized that the transaction is purely commercial and unrelated to recent political discussions about Panama’s ports.

BlackRock, one of the world’s largest asset management firms, is leading the acquisition alongside Swiss-based Terminal Investment Limited.