China’s CK Hutchison has reached an agreement to sell a majority stake in its global port operations, including the controversial Panama terminals, to a consortium led by U.S. investment giant BlackRock and MSC Group’s terminal operator, Terminal Investment Limited (TiL). The deal, valued at $22.8 billion, involves 80% ownership of Hutchison’s 43-port portfolio worldwide and a separate 90% stake in Panama Ports Company, which operates the key terminals in Balboa and Cristobal, Panama.
The transaction follows a competitive bidding process, with Hutchison confirming that multiple offers were received before selecting BlackRock and TiL. While the deal is still in its preliminary stages, the companies have entered exclusive negotiations and are undergoing confirmatory due diligence, with the goal of finalizing agreements by April 2.
The sale comes amid ongoing scrutiny over Chinese involvement in Panama’s port operations. Former U.S. President Donald Trump previously claimed that “China is running the Panama Canal,” and Panama’s government recently questioned the legality of Hutchison’s contract extension granted in 2021. However, Hutchison’s Co-Managing Director Frank Sixt has emphasized that the sale is a purely commercial decision, unrelated to political concerns.
The Panamanian government must approve the proposed terms for the Panama terminals, while BlackRock has reportedly briefed the Trump administration and the U.S. Congress on the acquisition. Hutchison expects to generate more than $19 billion in cash proceeds from the deal after accounting for minority interests and debt repayment. Notably, the transaction does not include Hutchison’s interests in HPH Trust, which manages ports in Hong Kong, Shenzhen, and other locations in China.
For BlackRock, this acquisition would be its largest-ever infrastructure investment. The firm is leveraging its recently acquired Global Infrastructure Partners (GIP), a specialist in energy, transportation, and waste management assets. Meanwhile, MSC continues its aggressive global expansion, having recently acquired a 49% stake in Hamburg’s terminal operations and other key port assets worldwide.
Diego Aponte, Chairman of TiL and President of MSC Group, expressed confidence in the investment, highlighting the strategic value of Hutchison’s ports. The sale is also expected to ease pressure on Panama, which has been under scrutiny for its long-standing agreements with Hutchison since 1997. Currently, Hutchison holds a concession for its Panama operations extending until 2047.
If finalized, the deal would reshape the global port industry, strengthening BlackRock’s and MSC’s positions in international logistics while reducing China’s footprint in Panama’s strategic maritime infrastructure.