Hong Kong conglomerate CK Hutchison has agreed to sell its stake in two Panama Canal ports to a consortium that includes U.S. and Swiss investors. This move comes amid pressure from the Trump administration, which raised concerns about the ports’ ties to China and their potential national security threat. President Trump claimed the sale as a victory in his address to Congress, stating that it was reclaiming the Panama Canal. However, both China and Panama have denied any foreign interference in the canal, emphasizing its neutrality.
The consortium, which includes BlackRock and Mediterranean Shipping Company, would gain control of an 80% interest in CK Hutchison subsidiary Hutchison Ports and 90% of Panama Ports, which operate the Balboa and Cristóbal ports. The $22.8 billion deal is purely commercial and unrelated to recent political news reports, according to CK Hutchison.
The Panama Canal is a strategically vital waterway with almost 15,000 ships transiting through it annually. Trump has claimed, without evidence, that China controls the canal and has expressed interest in using military force to seize it back. However, the canal’s neutrality and operation remain under the Panama Canal Authority.
The sale does not affect CK Hutchison’s ports in China, and the company’s stock rose nearly 22% after the news. The focus on the Panama Canal by the Trump administration reflects its perceived significance as a key global shipping route.
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