The Panama Canal might be back under the control of the United States following a deal made by a consortium, led by the American investment giant BlackRock.
Reportedly, a Hong Kong-based conglomerate CK Hutchison Holdings which operates ports near the Panama Canal has agreed to sell shares in its port operations to the consortium, after President Donald Trump expressed concerns of China’s growing influence over the canal.
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In a press release on Tuesday, CK Hutchison said it would sell all shares in Hutchison Port Holdings and all shares in Hutchison Port Group Holdings. These two units own 80% of the Hutchison Ports group, which operates 43 ports in 23 countries, including two of the four major ports along the Panama Canal.
The deal will apparently give the BlackRock group control over these 43 ports in countries like Mexico, the Netherlands, Egypt, Australia, and Pakistan. It is being reported that the group, made up of BlackRock, Global Infrastructure Partners, and Terminal Investment Limited (TIL), will buy 90% of Panama Ports Company, which runs the Balboa and Cristobal ports in Panama.
“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,” BlackRock CEO Larry Fink said in a joint announcement with TlL of the deal.
The Panama Canal has a significant history with the United States. After France’s failed attempt to build the canal in the 1880s, the U.S. took over the project in the early 1900s. Following Panama’s independence from Colombia in 1903, the U.S. signed the Hay-Bunau-Varilla Treaty, granting it control over the canal. The canal was completed in 1914, greatly enhancing global trade by connecting the Atlantic and Pacific Oceans.
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The U.S. controlled the canal and the surrounding Canal Zone until the Panama Canal Treaty in 1977, which set a plan for transferring control to Panama by 1999. Since then, the Panama Canal Authority has managed operations, although the canal remains crucial for international trade.
The U.S. and Panama maintained strong diplomatic and economic ties, with the U.S. investing in trade agreements and cooperating on security and drug control issues.
In December 2024, Trump called on Panama to reduce fees for the Panama Canal or return it to U.S. control, accusing the Central American nation of charging “exorbitant prices” to American shipping and naval vessels.