Consortium from US to Purchase Ports at Panama Canal
A firm based in Hong Kong has come to an agreement to sell a majority interest to a consortium from the United States, coinciding with Donald Trump's commitments to reclaim the canal. Read Full Article at RT.com
TroibNews 
A logistics giant based in Hong Kong has announced its intention to divest a 90% stake in its operations related to two major ports on the Panama Canal, in a deal led by an American multinational consortium. This transaction occurs in the context of increasing pressure from US President Donald Trump regarding alleged Chinese influence over this strategic waterway.
During a special joint session of the US Congress on Tuesday, the president stated that he is successfully pushing for the reclamation of the Panama Canal, which he characterizes as a crucial infrastructure project established by Americans for the benefit of Americans.
CK Hutchison Holdings, the Asian logistics powerhouse, plans to sell a 90% interest in the Panama Ports Company to a consortium that includes US investment firm BlackRock, its affiliate Global Infrastructure Partners, and Geneva-based container terminal operator Terminal Investment, as outlined in a joint statement from CK Hutchison and BlackRock on Tuesday.
Panama Ports Company currently holds a contract to manage the ports of Balboa and Cristobal, located at the Pacific and Atlantic entrances of the canal, with the contract lasting until 2047.
Additionally, the agreement entails the sale of an 80% stake in CK Hutchison’s port subsidiaries that operate 43 ports across 23 countries, including the UK, Germany, Mexico, Australia, Argentina, and South Korea.
The deal, which is valued at nearly $23 billion and includes $5 billion in debt, specifies that there is no interest in any trust that “operates ports in Hong Kong, Shenzhen and South China, or any other ports in China.”
Following the announcement, shares of CK Hutchison, which has a market capitalization of HK$148 billion, surged by 22% during morning trading in Hong Kong on Wednesday.
Trump has frequently threatened to regain control over the Panama Canal, citing “ridiculous fees” and worries about China’s expanding influence in the area, which was constructed by the US in the early 20th century and given to Panama in 1999.
In February, Panamanian President Jose Raul Mulino made a concession to the US by opting not to renew the 2017 agreements with China as part of Beijing’s Belt and Road Initiative.
Emily Johnson contributed to this report for TROIB News
During a special joint session of the US Congress on Tuesday, the president stated that he is successfully pushing for the reclamation of the Panama Canal, which he characterizes as a crucial infrastructure project established by Americans for the benefit of Americans.
CK Hutchison Holdings, the Asian logistics powerhouse, plans to sell a 90% interest in the Panama Ports Company to a consortium that includes US investment firm BlackRock, its affiliate Global Infrastructure Partners, and Geneva-based container terminal operator Terminal Investment, as outlined in a joint statement from CK Hutchison and BlackRock on Tuesday.
Panama Ports Company currently holds a contract to manage the ports of Balboa and Cristobal, located at the Pacific and Atlantic entrances of the canal, with the contract lasting until 2047.
Additionally, the agreement entails the sale of an 80% stake in CK Hutchison’s port subsidiaries that operate 43 ports across 23 countries, including the UK, Germany, Mexico, Australia, Argentina, and South Korea.
The deal, which is valued at nearly $23 billion and includes $5 billion in debt, specifies that there is no interest in any trust that “operates ports in Hong Kong, Shenzhen and South China, or any other ports in China.”
Following the announcement, shares of CK Hutchison, which has a market capitalization of HK$148 billion, surged by 22% during morning trading in Hong Kong on Wednesday.
Trump has frequently threatened to regain control over the Panama Canal, citing “ridiculous fees” and worries about China’s expanding influence in the area, which was constructed by the US in the early 20th century and given to Panama in 1999.
In February, Panamanian President Jose Raul Mulino made a concession to the US by opting not to renew the 2017 agreements with China as part of Beijing’s Belt and Road Initiative.
Emily Johnson contributed to this report for TROIB News
