A Hong Kong-based conglomerate has agreed to sell its controlling stake in a subsidiary that operates ports near the Panama Canal to a consortium including BlackRock Inc.
It puts the ports under American control. President Donald Trump was deeply concerned about Chinese interference with the operations of the critical shipping lane.
In a filing, CK Hutchison Holding said Tuesday that it would sell all shares in Hutchison Port Holdings and in Hutchison Port Group Holdings to the consortium in a deal valued at nearly $23 billion, including $5 billion in debt.
The deal will give the BlackRock consortium control over 43 ports in 23 countries, including the ports of Balboa and Cristobal, located at either end of the Panama Canal. Other ports are in Mexico, the Netherlands, Egypt, Australia, Pakistan and elsewhere.
The transaction, which must be approved by Panama’s government, does not include any interest in a trust that operates ports in Hong Kong, Shenzhen and South China, or any other ports in China.
The US built the canal at great cost financially and in lives lost. The Chinese communists have been buying up land around the Canal. They are dangerous geopolitical foes. Over 70% of traffic is US.
This is a huge win for the Trump administration.
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