BlackRock and a consortium are acquiring a 90% stake in Panama Ports Company amid U.S. concerns over Chinese influence in the Panama Canal. CK Hutchison Holdings announced its intention to sell its shares in Hutchison Ports, which operate key ports in Panama. U.S. officials have heavily scrutinized this issue, perceiving significant implications for national security.
BlackRock, alongside a consortium that includes Global Infrastructure Partners and Terminal Investment Limited, has agreed to acquire a 90% stake in the Panama Ports Company, which operates the crucial ports of Balboa and Cristobal. This transaction follows concerns raised by U.S. officials regarding Chinese influence over the Panama Canal, particularly after President Donald Trump cited potential threats to U.S. national security from such interference. CK Hutchison Holdings announced on March 4 its decision to divest 80% interest in its Hutchison Ports group, which manages 43 ports across 23 countries.
The scrutiny of Hutchison Ports intensified after Senator Ted Cruz articulated concerns about the possibility of China exploiting the canal, emphasizing that the ports could serve as observation posts for Chinese interests. Following these developments, U.S. Secretary of State Marco Rubio urged Panamanian President José Raúl Mulino to diminish Chinese leverage over the canal, warning of potential repercussions from the United States if such influence persisted. Although Mulino refuted claims of any Chinese control over canal operations, Panama’s withdrawal from China’s Belt and Road Initiative occurred shortly thereafter, resulting in Beijing’s disapproval.
Despite heightened focus on President Trump’s declaration concerning potential U.S. control over the canal, his administration shifted attention towards Hutchison Ports, which recently received a 25-year no-bid extension for managing the ports. An ongoing audit of this extension had sparked speculation about a rebidding process. Observers noted rumors that a U.S.-based firm connected to the White House might be prepared to take over management of the strategic ports, indicating a shifting landscape in U.S.-Panama relations regarding port operations.
In summary, the acquisition of a majority stake in the Panama Ports Company by BlackRock and its partners marks a significant shift in ownership amid concerns regarding Chinese influence. U.S. officials have expressed the necessity for Panama to take action against such influences to safeguard national interests. This transaction reflects ongoing geopolitical tensions and U.S. efforts to bolster control over critical shipping routes.
Original Source: www.ttnews.com
