And The Panama Canal Goes To…. BlackRock!

BlackRock strikes $23 billion deal to place Panama Canal ports under American control

The Hong Kong-based conglomerate that operates ports near the Panama Canal has agreed to sell shares of its units that operate the ports to a consortium including BlackRock Inc., after President Trump alleged Chinese interference with the operations of the critical shipping lane. 

The consortium, comprised of BlackRock, Global Infrastructure Partners and Terminal Investment Limited will acquire 90% interests in Panama Ports Company, which owns and operates the ports of Balboa and Cristobal in Panama, according to the filing. 

“This agreement is a powerful illustration of BlackRock and GIP’s combined platform and our ability to deliver differentiated investments for clients. These world-class ports facilitate global growth,” BlackRock CEO Larry Fink said in a joint announcement with TilL of the deal. “Through our deep connectivity to organizations like Hutchison and MSC/TIL 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.

In January, U.S. Sen. Ted Cruz, the Republican chair of the Senate Committee on Commerce, Science and Transportation, raised concerns that China could exploit or block passage through the canal and that the ports “give China ready observation posts” to take action. “This situation, I believe, posts acute risks for U.S. national security,” Cruz said.

U.S. Secretary of State Marco Rubio visited Panama in early February and told President José Raúl Mulino that Panama had to reduce Chinese influence over the canal or face potential retaliation from the United States. Mulino rejected the idea that China had any control over canal operations.

Panama quit China’s Belt and Road Initiative following Rubio’s visit, drawing condemnation from Beijing.

Mr. Trump touted the move in his address to a joint session of Congress Tuesday night, saying that “to further enhance our national security, our administration will be reclaiming the Panama Canal, and we’ve already started doing it.”

“Just today, a large American company announced they are buying both ports around the Panama Canal, and lots of other things having to do with the Panama Canal, and a couple of other canals,” the president said.

Victory for Trump

With 40 million container ships passing through every year, the Panama Canal — a 51 mile waterway that cuts through Central America, linking the Atlantic and the Pacific oceans — is vital to the U.S. economy. Disputes over the canal were first sparked in 2024 when Mr. Trump, then a presidential candidate, made accusations that Chinese companies have taken control of the ports. 

But while much attention was focused on Mr. Trump’s threat to retake control of the canal, his administration trained its sights on Hutchison Ports, the Hong Kong-based consortium that manages the canal’s key ports, at either end of the canal. As a result of BlackRock’s deal with CK Hutchison Holding, those two key ports will be placed under American control. 

The United States is the canal’s largest user, with about 70% of shipping traffic going through the canal either coming to or from the U.S. Its second largest user is China.

Hutchison Ports had recently been awarded a 25-year no-bid extension to run the ports, but an audit looking at that extension was already underway. Observers believed the audit was a preliminary step toward eventually rebidding the contract, but rumors had swirled in recent weeks that a U.S. firm close to the White House was being lined up to take over.

Shared from https://www.cbsnews.com/news/blackrock-panama-canal-deal-ck-hutchison-trump/

BlackRock secures control of Panama Canal ports, curtailing Chinese influence

• BlackRock acquires majority stakes in two Panama Canal ports in a $23 billion deal, reducing Chinese-linked influence over the critical trade route.
• The deal transfers control from Hong Kong-based CK Hutchison to a U.S.-led consortium, aligning with Trump’s efforts to counter China’s global infrastructure influence.
• BlackRock gains control of Panama’s Balboa and Cristobal ports, plus 43 other ports globally, through its subsidiary Global Infrastructure Partners.
  U.S. officials celebrate the move as a strategic win, citing concerns over China’s potential to exploit port control for military or economic leverage.
• The acquisition marks a geopolitical shift, reinforcing U.S. dominance over the Panama Canal and safeguarding global trade routes.

In a landmark $23 billion deal, BlackRock, the world’s largest asset manager, has acquired majority stakes in two strategic ports at the Panama Canal, effectively pushing out Chinese-linked influence over one of the world’s most vital trade routes.

The transaction, which was announced on Tuesday, transfers control of the ports from Hong Kong-based CK Hutchison Holdings to a U.S.-led consortium spearheaded by BlackRock. This move aligns with President Trump’s longstanding warnings about China’s growing influence over global infrastructure and marks a significant shift in geopolitical control over the canal, which handles more than 70% of U.S.-bound shipping.

The deal grants BlackRock control of Panama’s Balboa and Cristobal ports, which are located at the Pacific and Atlantic ends of the canal, respectively, as well as 43 other ports across 23 countries. The acquisition, executed through BlackRock’s subsidiary Global Infrastructure Partners (GIP) in partnership with Terminal Investment Limited (TiL), underscores the firm’s growing role in global infrastructure investments.

A strategic win for U.S. interests

The Panama Canal has long been a linchpin of global trade, with its operations critical to U.S. economic and military strategy. For years, U.S. officials have raised alarms about China’s expanding presence in the region, warning that Beijing could exploit its control over ports for intelligence gathering, military positioning, or even disrupting shipping to harm the U.S. economy.

“China is getting kicked out of Panama, and America is winning. Thank you, President Trump. MAGA!” wrote the House Foreign Affairs Committee Majority in a post on X, celebrating the deal.

Trump, who has repeatedly emphasized the canal’s importance to U.S. national security, hailed the acquisition as a step toward “reclaiming” the waterway. “The United States has a vested interest in the secure, efficient, and reliable operation of the Panama Canal,” Trump said in a Truth Social post. “We would and will NEVER let it fall into the wrong hands!”

A purely commercial deal?

Although CK Hutchison co-managing director Frank Sixt insisted the transaction was “purely commercial in nature,” the geopolitical implications are undeniable. The deal removes Chinese-linked entities from controlling critical infrastructure near the canal, a move that aligns with the Trump administration’s broader efforts to counter Beijing’s influence in the Western Hemisphere.

BlackRock CEO Larry Fink emphasized the deal’s economic significance, stating, “These world-class ports facilitate global growth. Through our deep connectivity to organizations like Hutchison and MSC/TIL and governments around the world, we are increasingly the first call for partners seeking patient, long-term capital.”

A turning point in geopolitics

The acquisition represents a significant shift in the balance of power over global trade routes. By placing control of the Panama Canal ports in American hands, the deal mitigates the risks associated with Chinese influence, such as potential surveillance, military pre-positioning, or economic leverage in geopolitical disputes.

As the Trump administration continues to push for greater U.S. control over the canal, this deal marks a pivotal moment in the ongoing struggle for dominance over critical global infrastructure. With BlackRock at the helm, the U.S. has taken a decisive step toward safeguarding one of the world’s most strategic trade corridors.

Shared from https://www.naturalnews.com/2025-03-05-blackrock-control-panama-canal-ports.html