Hong Kong Billionaire to Sell Panama Canal Ports to US Firm

• Mar 7, 2025

Hong Kong-based company agrees to sell stake in key Panama Canal ports to US-led group, including BlackRock

A Hong Kong-based company has reached an agreement to sell most of its stake in two major ports on the Panama Canal to a consortium led by US investment giant BlackRock.

The decision follows weeks of criticism from former US President Donald Trump, who claimed that China had too much control over the canal and suggested the United States should reclaim authority over the crucial shipping route.

CK Hutchison Holdings, a firm founded by Hong Kong billionaire Li Ka-shing, operates ports at both the Atlantic and Pacific entrances to the canal through a subsidiary. On Tuesday, the company announced plans to sell its interests in a deal valued at $22.8 billion (£17.8 billion).

Although CK Hutchison is not owned by the Chinese government, its base in Hong Kong means it operates under Chinese financial regulations. The company has managed the Panama Canal terminals since 1997.

Global Deal Includes 43 Ports Across 23 Countries

The sale is part of a broader transaction covering 43 port facilities in 23 countries, including the two Panama Canal terminals. However, the deal is subject to approval from the Panamanian government.

The 51-mile (82km) Panama Canal serves as a critical link between the Atlantic and Pacific Oceans, accommodating up to 14,000 vessels annually. These include container ships transporting goods such as automobiles and natural gas, as well as military ships.

Constructed in the early 1900s, the canal was under US control until 1977, when treaties set in motion its gradual transfer back to Panama. The transition ended in 1999, granting Panama full authority over the waterway.

US Pressure Over Chinese Influence

Trump has repeatedly argued that the US should reclaim control over the canal, citing national security concerns, past American investment in its construction, and what he sees as excessive toll charges for US ships.

During a visit to Panama in February, US Secretary of State Marco Rubio urged the Panamanian government to take "immediate action" against what he described as China's "influence and control" over the canal.

However, Panamanian President Jose Raul Mulino dismissed the claims, stating that the canal "is and will remain" under Panama’s sovereignty.

In response to speculation over political motivations, CK Hutchison’s co-managing director, Frank Sixt, emphasized that the sale was purely a commercial decision and unrelated to recent geopolitical tensions.

BlackRock, one of the world’s largest asset management firms, leads the group acquiring the ports. The consortium also includes Terminal Investment Limited, a Switzerland-based company.