A major Hong Kong based logistics company, CK Hutchison Holdings has announced the sale of 80 per cent stake in its Panama port operations to investors including BlackRock Inc. The deal which was sealed at $14.21 billion has made the US to have concerns on Chinese influence in the region. The sale comprises a 90% interest in Panama Ports Company that holds the strategic ports of Balboa and Cristobal in the entrance of the Panama Canal. However, former U.S President Donald Trump has continually raised concerns about China’s involvement in the canal while CK Hutchison said it has no political motive in the sale. “We want to clarify that this transaction has no political implications and is solely a business move,” said CK Hutchison Holdings co-managing director Frank Sixt. These ports have been operated by CK Hutchison for more than two decades together with other firms from the US, Taiwan and Singapore that are allowed to operate within the canal. BlackRock and its consortium which includes Global Infrastructure Partners and Terminal Investment has been given exclusive negotiation rights for 145 days. CK Hutchison also pointed out that this sale does not include any of its port operations in Hong Kong, Shenzhen or mainland China. This marks a significant shift in the control of key maritime infrastructure as this move comes in the background of global trade tensions. It is still evident how the power balance in the Panama Canal region is going to be affected by the deal.
Hong Kong Firm Sells Stake in Panama Canal Ports
