Hong Kong-based conglomerate CK Hutchison has agreed to sell its stake in two Panama Canal ports to a consortium including U.S. asset manager BlackRock amid pressure from the Trump administration over the ports’ ties to China. President Trump claimed the Chinese-backed ports posed a national security threat and announced that a large American company would be buying them in his address to Congress. Nearly 15,000 ships transit through the Panama Canal annually, with about two-thirds headed to or from the U.S. Trump has claimed, without evidence, that China controls the canal and stated he would consider using military force to seize it back from Panama. Both China and Panama deny any foreign interference in the canal, with China supporting Panama’s sovereignty. The proposed deal involves a consortium gaining control of an 80% interest in Hutchison Ports, which operates 43 ports in 23 countries, and a 90% interest in Panama Ports, which operates ports on either side of the canal. The agreement, subject to regulatory approval, is purely commercial in nature and unrelated to recent political news reports. The potential sale prompted a nearly 22% increase in CK Hutchison’s stock price. The Trump administration has been focused on control over the Panama Canal, with Marco Rubio making Panama part of his first foreign trip as secretary of state. The two ports in question were acquired by Hutchison Ports in 1997 through a bidding process described as fair and nondiscriminatory by U.S. officials.
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