BlackRock Consortium to Acquire Panama Ports from CK Hutchison

A consortium including BlackRock is prepared to acquire Panama ports from CK Hutchison. This deal encompasses a 90% interest in Panama Ports Company and additional global port operations, valued at approximately US$22.8 billion. Government approval is pending as the acquisition focuses on strengthening global port competitiveness.

A consortium led by BlackRock is poised to acquire Panama ports from CK Hutchison, marking a significant shift in ownership. This agreement, initiated with Huawer Hutchison Holdings, involves the purchase of a 90% stake in Panama Ports Company (PPC), which operates key ports Balboa and Cristobal. Furthermore, the consortium will gain control of CK Hutchison’s various port operations across 23 countries, though it does not include interests in ports within China.

The acquisition is contingent upon the approval of the Panamanian government, and it has been agreed that the transaction will be executed swiftly, pending due diligence and necessary regulatory endorsements. The total enterprise value is estimated at US$22.8 billion, with fundamental agreement terms established for both the PPC transaction and the larger HPH ports transaction, expected to wrap up by April 2, 2025.

Larry Fink, Chairman and CEO of BlackRock, expressed that this partnership exemplifies BlackRock’s capability in forming valuable investments that foster global growth. He emphasized the consortium’s strong relationships with Hutchison and MSC, which enable them to meet clients’ long-term capital needs effectively.

Bayo Ogunlesi, GIP Chairman and CEO, reiterated the long-standing and constructive ties with Terminal Investment Limited and MSC, underscoring their commitment to maintaining competitive and service-oriented port operations. Diego Aponte, Chairman of TiL, praised the enduring relationship with Hutchison Ports, showing optimism towards the future if the transaction is finalized.

CK Hutchison’s Co-Managing Director, Frank Sixt, noted that the competitive bidding process yielded an attractive valuation indicative of shareholder interests. He assured that the transaction is strictly commercial and not influenced by recent political events surrounding the Panama ports.

In summary, the BlackRock-led consortium is set to acquire significant port operations in Panama and across other nations from CK Hutchison, emphasizing a commitment to enhancing global port efficiency and competitiveness. The transaction, valued at US$22.8 billion, is subject to governmental approval and is poised for completion in the coming months.

Original Source: www.marinelog.com