U.S. asset manager BlackRock (BLK) has agreed to pay $22.8 billion U.S. to acquire majority stakes in the ports on either side of the Panama Canal.
BlackRock’s acquisition brings the ports on both sides of the Panama Canal under U.S. control and removes them from the control of CK Hutchison Holdings, a Hong Kong-based company.
BlackRock is acquiring a 90% interest in the Panama Ports Company alongside Global Infrastructure Partners and container terminal group Terminal Investment.
Panama Ports owns and operates the ports of Balboa and Cristobal within Panama.
BlackRock’s majority control of the ports near the Panama Canal comes after multiple threats from U.S. President Donald Trump to “take back” the strategic shipping route.
Trump has frequently claimed that the canal is really being run by China, claims that Panama President Jose Raul Mulino has denied.
However, Mulino said that Panama would not renew membership in China’s “Belt and Road Initiative” following talks with U.S. Secretary of State Marco Rubio in February of this year.
The Panama Canal is managed by the Panama Canal Authority, an organization that operates independently of the Panamanian government.
The stock of BlackRock has risen 15% over the last 12 months to trade at $951.79 U.S. a share.
Tech Insider
