A Hong Kong-based company, CK Hutchison Holdings, is set to sell its major stakes in two influential Panama Canal ports to a consortium led by the US investment giant BlackRock. This move follows considerable political discourse surrounding the canal's management and allegations regarding Chinese control. CK Hutchison, although not state-owned, operates under Chinese financial law due to its Hong Kong base and has managed these ports since 1997. The $22.8 billion deal encompasses 43 ports across 23 countries and requires ratification from Panamanian authorities. The Panama Canal, a crucial maritime route, facilitates around 14,000 ship transits annually and has been a focal point in US-Panama relations since it was fully returned to Panama's control in 1999. Amidst criticisms from former President Trump and current US officials regarding Chinese influence, the Panamanian government has firmly stated that the canal remains under its sovereignty.
Hong Kong Firm Sells Majority Stake in Panama Canal Ports to BlackRock
Hong Kong Firm Sells Majority Stake in Panama Canal Ports to BlackRock
A significant transaction sees a Hong Kong-based company divesting most of its holdings in essential Panama Canal ports amidst political tensions concerning Chinese influence.
In light of this, CK Hutchison has emphasized that the sale is strictly a business transaction independent of ongoing political narratives linked to the Canal's governance.
