BlackRock buys two Panama Canal ports from Hong Kong company

A consortium led by the American investment group plans to buy the Panama Canal holdings of the Hong Kong-based firm CK Hutchison Holdings Limited for $22.8 billion, according to a news release. Under the deal, an investment group led by BlackRock Inc. would receive 90% of the Panama Ports Company and control of the ports of Cristobal and Balboa at each end of the canal. The consortium, which includes Terminal Investment and Global Infrastructure Partners, would also gain control of 41 other ports in 23 countries.

The transaction is still pending approval from the Panamanian government, which owns the canal itself. If approved, the companies expect to ink the deal by April 2.

Did U.S. President Donald Trump influence the sale? Control over the American-built canal has been a focus of the Trump administration. The president has criticized the canal’s management, accusing Panama of imposing exorbitant fees and allowing Chinese control. The Central American country’s president, José Raúl Mulino, has vehemently denied Trump’s claims. Following the purchase announcement, Trump on Tuesday called the sale a reclaiming of the canal. However, a CK Hutchison spokesperson said the sale was completely commercial and unrelated to Trump’s comments.