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The BlackRock-TiL consortium, comprising financial giant BlackRock and Terminal Investment (TiL), will buy CK Hutchison Holdings' 90% interest in the Panama Ports Company and a total of 43 ports comprising 199 berths in 23 countries, from Hutchison Port Holdings (HPH) $22.8bn.
The deal excludes HPH's interest in key Chinese ports, including but not limited to Hong Kong and Shenzhen.
US President Donald Trump mentioned the deal in a speech to the joint houses of Congress, as part of his long-running allegation that "China" owns and operates the Panama Canal - a claim that is demonstrably false.
He claimed: “My administration will be reclaiming the Panama Canal, and we've already started doing it,” reported Reuters.
However, while it is true that HPH did own and operate the ports of Balboa and Cristobal in Panama, they are not part of the Panama Canal.
The Panamanian President Jose Raul Mulino responded by saying "[Donald Trump is] once again lying."
"The Panama Canal is not in the process of being reclaimed ... the Canal is Panamanian and will continue to be Panamanian," he clarified. The Panama Canal is owned and operated by the Panama Canal Authority, which is an autonomous body created by the Political Constitution of the Republic of Panama.
The consortium will undertake customary due diligence and work towards finalising the definitive agreements.
In the interim, CK Hutchison and Hutchison Port Holdings have entered into exclusive negotiations and confidentiality arrangements with the consortium, granting them full access to the required information and documentation.
The parties have agreed on the essential terms, with definitive documentation expected by 2 April 2025.
BlackRock chairman and CEO Larry Fink said: “This agreement is a powerful illustration of BlackRock and GIP’s combined platform and our ability to deliver differentiated investments for clients. These world-class ports facilitate global growth.
“Through our deep connectivity to organisations like Hutchison and MSC/TIL and governments around the world, we are increasingly the first call for partners seeking patient, long-term capital.”
The transaction is expected to reshape the landscape of global port operations, pending the completion of the necessary procedures.
TiL chairman MSC Group president Diego Aponte said: “Our relationship with Hutchison Ports goes back a long way and is a relationship of mutual respect and friendship.
"Furthermore, we are very pleased to partner with BlackRock and Global Infrastructure Partners (GIP), with whom we share a longstanding and terrific relationship.”