Blackrock acquires Panama Canal ports amid Trump pressure
The Chinese company CK Hutchison has sold a majority stake in ports along the Panama Canal to the American firm BlackRock, reportedly under pressure from Donald Trump.
Under pressure from U.S. President Donald Trump, the Chinese company CK Hutchison decided to sell a majority stake in two ports along the Panama Canal to the American investment firm BlackRock, according to Bloomberg. This transaction is part of a larger sale that includes 43 ports in 23 countries, excluding facilities in mainland China and Hong Kong.
The company also held a stake in the port of Gdynia, which may be part of the transaction.
Geopolitical tensions and business decisions
CK Hutchison's share sale is seen as an opportunity to capitalize on global geopolitical tensions and trade barriers that have weakened port operations' prospects. Gary Ng, a senior economist at investment bank Natixis SA, described it as "a perfect example of turning geopolitical risks into opportunities." After the transaction, the company's shares rose by 25%, boosting its market value by nearly $5 billion.
Vincent Lam, the chief investment officer at the consultancy firm VL Asset Management, stated, "CK Hutchison is sandwiched between China and the US and is unable to please anyone." Meanwhile, Frank Sixta from CK Hutchison declared that"it is purely commercial in nature and wholly unrelated to recent political news reports concerning the Panama Ports."
The New York Times noted that BlackRock's acquisition of stakes in the ports illustrates Trump’s foreign policy under the banner "America First." Historian Prof. Peter James Hudson from the University of British Columbia posed the rhetorical question, "Where is Panama's voice in this matter?" suggesting that Panama is lost in Trump's political efforts.
Panama's president, Jose Raul Mulino, seems to downplay its geopolitical significance, describing it on social media as "a global transaction between private companies."
