MercoPress. South Atlantic News Agency

Preliminary deal reached for sale of Hong Kong company's stake in Panama Canal operations

CK Hutchison has been operating the Port of Balboa for more than two decades

Given US President Donald Trump's pressure, CK Hutchison Holdings, a Hong Kong-based conglomerate, agreed to sell control of a unit operating ports near the Panama Canal, it was announced Tuesday. The sale includes an 80% stake in the Hutchison Ports group and a 90% interest in Panama Ports Company, which operates the ports of Balboa and Cristobal. The consortium acquiring these stakes includes BlackRock Inc., Global Infrastructure Partners, and Terminal Investment Ltd.

The nearly US$ 14.21 billion preliminary deal aims to limit Chinese influence and control over the Panama Canal, it was explained. CK Hutchison Holdings announced it agreed to sell control of a unit operating ports near the Panama Canal after Trump said he wanted the United States to regain control of the critical trade route.

A consortium including BlackRock, Global Infrastructure Partners, and Terminal Investment Ltd reached a preliminary deal to acquire units that hold 80% of the Hutchison Ports group, worth about US$20 billion, CK Hutchison said in a statement. The sale does not involve any interest in Hutchison Port Holdings Trust, which operates ports in Hong Kong and Shenzhen, as well as South China, or any other ports in Mainland China, the company also said.

The Hutchison Ports group operates 43 ports in 23 countries, while BlackRock Inc. and its Global Infrastructure Partners unit, along with Mediterranean Shipping Co.’s ports division, will also acquire 90% of Panama Ports Co., which operates the two entryways in Balboa and Cristobal.

CK Hutchison has been operating the ports of Balboa and Cristobal at the canal's Pacific and Atlantic entrances for more than two decades. Other ports in the canal are operated by firms from the US, Taiwan, and Singapore.

Negotiations are now expected to last at least 145 days before a final deal is concluded.