A $22.8 billion deal has been struck for the purchase of two key Panama Canal ports, with a BlackRock-led consortium acquiring the assets from the Hong Kong-based CK Hutchison. This move comes as tensions rise over the potential Chinese influence in the region.
Despite the timing, CK Hutchison’s co-managing director insisted that the sale is “purely commercial in nature and wholly unrelated to recent political news reports concerning the Panama Ports,” reports Semafor.
The deal is considered a win for President Donald Trump, who has raised national security concerns about the canal and China. Trump has previously suggested that the US could reclaim control over the canal, as the privately owned ports at both ends are seen as critical.
According to a statement from BlackRock, the consortium will take a 90 percent stake in the subsidiary of CK Hutchison that runs the two ports.
“These world-class ports facilitate global growth,” said a statement from BlackRock CEO Larry Fink reports CNN. “Through our deep connectivity to organizations like Hutchison … and governments around the world, we are increasingly the first call for partners seeking patient, long-term capital. We are thrilled our clients can participate in this investment.”
The White House did not immediately comment on the purchase, but the buy could help ease Trump’s concerns about Chinese influence over the waterway. Last month, Mike Waltz, the administration’s national security advisor, informed reporters that Panama’s leadership had begun “negotiations about addressing the ports on either side of the canal.”
This Story originally came from humanevents.com