CK Hutchison Holding has agreed to sell its stakes in two significant Panama Canal ports to BlackRock and partners for $22.8 billion. This sale follows President Trump’s criticisms of Chinese control over the canal, leading to calls for increased US oversight. Panama’s government, however, asserts its control over the canal, rejecting US influence claims.

A Hong Kong-based company has reached an agreement to divest a majority stake in two significant ports on the Panama Canal to a consortium led by the US investment firm BlackRock. This decision follows consistent critiques from President Donald Trump regarding Chinese oversight of the canal and his calls for US dominance over this essential maritime route.

CK Hutchison Holding, through one of its subsidiaries, has operated these canal ports — located at both the Atlantic and Pacific entrances — since 1997. The transaction, valued at $22.8 billion (£17.8 billion), will encompass a total of 43 ports across 23 countries, including the two crucial terminals at the Panama Canal. The agreement is pending approval from the Panamanian government.

The Panama Canal, measuring 51 miles (82 km), serves as the primary conduit between the Atlantic and Pacific Oceans, facilitating the passage of approximately 14,000 ships annually, including container vessels and military ships. Originally constructed in the early 1900s, the canal was under US governance until 1977 when treaties initiated the return of the land to Panama, culminating in full Panamanian control in 1999.

President Trump has articulated various reasons for advocating for enhanced US control over the canal, framing Chinese influence as a national security concern and asserting that US investment in the canal’s construction legitimizes claims for control. He has criticized the fees imposed on US vessels traversing the waterway. During a visit to Panama, US Secretary of State Marco Rubio insisted that immediate adaptations should be made regarding China’s influence over the canal.

Panama’s administration has firmly dismissed these US allegations. President Jose Raul Mulino emphasized that the canal “is and will remain” under Panamanian stewardship. Frank Sixt, co-managing director of CK Hutchison, clarified that the divestiture is purely a commercial decision, disassociated from recent political narratives concerning the Panama ports.

The acquisition by BlackRock, one of the largest asset management firms globally, also includes Terminal Investment Limited, a Swiss company. The transaction reflects the ongoing dynamics of international investment and geopolitical considerations present in key global infrastructures.

In summary, a Hong Kong company has agreed to sell most of its interest in two Panama Canal ports to a US-led consortium, largely influenced by geopolitical concerns. The transaction, valued at $22.8 billion, awaits government approval in Panama, and highlights the ongoing tensions surrounding the canal’s management and international control. Panamanian officials maintain the sovereignty of the canal despite US demands for changes regarding Chinese influence.

Original Source: www.bbc.com

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