Consortium from US to Purchase Ports of Panama Canal
A firm based in Hong Kong has reached an agreement to sell a majority stake to a consortium from the United States, coinciding with Donald Trump's promises to reclaim the canal. Read Full Article at RT.com.
TroibNews 
A logistics giant based in Hong Kong has decided to sell a controlling stake in its operations managing two significant ports on the Panama Canal to a group of investors led by an American multinational. This move comes as US President Donald Trump increases pressure regarding concerns over Chinese influence on this essential waterway.
During a special joint session of the two chambers of the US Congress on Tuesday, President Trump stated he is actively pursuing diplomatic avenues to regain control of the Panama Canal, which he emphasizes as an essential infrastructure project initially established by Americans for Americans.
CK Hutchison Holdings, an Asian logistics powerhouse, will divest a 90% interest in Panama Ports Company to a consortium that comprises US investment firm BlackRock, its subsidiary Global Infrastructure Partners, and Geneva-based terminal operator Terminal Investment, as outlined in a joint statement from CK Hutchison and BlackRock on Tuesday.
Panama Ports Company holds the contract to manage the ports of Balboa and Cristobal, situated at the Pacific and Atlantic entrances of the canal, until 2047.
Additionally, the agreement encompasses the sale of an 80% stake in CK Hutchison’s ports subsidiaries that operate 43 ports across 23 countries, which include locations in the UK, Germany, Mexico, Australia, Argentina, and South Korea.
The deal, valued at nearly $23 billion and including $5 billion in debt, will not affect a trust that “operates ports in Hong Kong, Shenzhen and South China, or any other ports in China,” as specified in the statement.
Following the announcement, shares of CK Hutchison, which has a market capitalization of HK$148 billion, surged 22% in morning trading in Hong Kong on Wednesday.
Trump has consistently threatened to reclaim authority over the Panama Canal, citing "ridiculous fees" and worries about China’s expanding presence around the waterway, which was constructed by the US in the early 20th century and handed over to Panama in 1999.
In February, Panamanian President Jose Raul Mulino made a concession to the US by opting not to renew the country’s agreements with China established in 2017 as part of Beijing’s Belt and Road Initiative.
Sanya Singh for TROIB News
During a special joint session of the two chambers of the US Congress on Tuesday, President Trump stated he is actively pursuing diplomatic avenues to regain control of the Panama Canal, which he emphasizes as an essential infrastructure project initially established by Americans for Americans.
CK Hutchison Holdings, an Asian logistics powerhouse, will divest a 90% interest in Panama Ports Company to a consortium that comprises US investment firm BlackRock, its subsidiary Global Infrastructure Partners, and Geneva-based terminal operator Terminal Investment, as outlined in a joint statement from CK Hutchison and BlackRock on Tuesday.
Panama Ports Company holds the contract to manage the ports of Balboa and Cristobal, situated at the Pacific and Atlantic entrances of the canal, until 2047.
Additionally, the agreement encompasses the sale of an 80% stake in CK Hutchison’s ports subsidiaries that operate 43 ports across 23 countries, which include locations in the UK, Germany, Mexico, Australia, Argentina, and South Korea.
The deal, valued at nearly $23 billion and including $5 billion in debt, will not affect a trust that “operates ports in Hong Kong, Shenzhen and South China, or any other ports in China,” as specified in the statement.
Following the announcement, shares of CK Hutchison, which has a market capitalization of HK$148 billion, surged 22% in morning trading in Hong Kong on Wednesday.
Trump has consistently threatened to reclaim authority over the Panama Canal, citing "ridiculous fees" and worries about China’s expanding presence around the waterway, which was constructed by the US in the early 20th century and handed over to Panama in 1999.
In February, Panamanian President Jose Raul Mulino made a concession to the US by opting not to renew the country’s agreements with China established in 2017 as part of Beijing’s Belt and Road Initiative.
Sanya Singh for TROIB News
