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 Donald Trump alleged 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 all shares in Hutchison Port Group Holdings. The two units hold 80% of the Hutchison Ports group that operates 43 ports in 23 countries. 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. In January, U.S. Senator 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 Jose Raul 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.
Here’s a revised version of your article with a more concise and polished tone:
Hong Kong Conglomerate Sells Panama Canal Port Shares to BlackRock-Led Consortium Amid US-China Tensions
CK Hutchison Holdings, a Hong Kong-based conglomerate operating ports near the Panama Canal, has agreed to sell its stakes in two key port units to a consortium led by BlackRock Inc. The move comes after former U.S. President Donald Trump and other U.S. officials raised concerns about Chinese influence over the critical shipping route.
In a recent filing, CK Hutchison announced the sale of all shares in Hutchison Port Holdings and Hutchison Port Group Holdings, which collectively hold an 80% stake in Hutchison Ports. The group operates 43 ports across 23 countries.
The BlackRock-led consortium, which includes Global Infrastructure Partners and Terminal Investment Limited, will acquire a 90% interest in Panama Ports Company. This entity owns and operates the ports of Balboa and Cristobal, strategically located on either side of the Panama Canal.
The deal follows heightened scrutiny from U.S. officials over China’s potential influence over the canal. In January, U.S. Senator Ted Cruz, chair of the Senate Committee on Commerce, Science, and Transportation, warned that China could exploit or block passage through the canal, calling the ports “ready observation posts” for potential interference.
“This situation, I believe, poses acute risks for U.S. national security,” Cruz stated.
U.S. Secretary of State Marco Rubio reinforced these concerns during a visit to Panama in early February, urging President Jose Raul Mulino to reduce Chinese influence over the canal or face potential retaliation from the United States. Mulino, however, dismissed claims that China had any control over canal operations.
The sale marks a significant shift in control over the Panama Canal’s key ports, aligning them more closely with U.S. interests amid ongoing geopolitical tensions.
