Investment Giants Modify $23B Port Deal After Panama Seizure

A major investment consortium led by BlackRock is working to finalize a massive port acquisition deal while excluding two Panama terminals that were recently seized by authorities. The modified agreement would still include approximately 41 port facilities spanning Europe, Southeast Asia, and the Middle East.

An investment consortium supported by BlackRock is working to finalize a major port acquisition deal while excluding two Panama Canal terminals that were recently taken over by government authorities, according to a Financial Times report released Tuesday.

The partnership between Mediterranean Shipping Company (MSC), a Swiss-Italian maritime firm, and the prominent U.S. asset management company is reportedly negotiating with CK Hutchison to purchase approximately 41 port facilities located throughout Europe, Southeast Asia, and the Middle East, sources close to the discussions told the publication.

Neither BlackRock, MSC, nor CK Hutchison provided responses when contacted for comment about the negotiations.

The exclusion of the Panama facilities stems from a January ruling by Panama’s highest court, which declared the operating agreement for Hutchison’s Panama Canal terminals violated the constitution. Following this decision, government officials assumed control of the port assets last month.

In response to the government takeover, Hutchison’s Panama Ports Company division has initiated international arbitration proceedings against the Central American nation.

The Hong Kong-based conglomerate CK Hutchison has been actively working to divest its international ports operations outside of China, which encompasses 43 terminal facilities across 23 nations worldwide.

The Panama Canal ports represented a crucial component of the $23 billion transaction that was initially announced last year. Under the original arrangement, BlackRock would have assumed control of the Panama operations while MSC would have acquired the majority of the remaining port assets in the portfolio.