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CK Hutchison Holdings to sell unit operating ports near Panama Canal amid Trump pressure
Decision by Hong Kong-based conglomerate comes as US president pushes for greater control of critical trade route over concerns about China
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Robert Delaneyin Washington
CK Hutchison Holdings announced on Tuesday that it had agreed to sell control of a unit operating ports near the Panama Canal after US President Donald Trump said he wanted the US to regain control of the critical trade route.
A consortium including BlackRock, Global Infrastructure Partners and Terminal Investment Ltd reached a preliminary deal to acquire units that hold 80 per cent of the Hutchison Ports group, worth US$23 billion (HK$179 billion), CK Hutchison said in a joint announcement with the consortium.
The consortium will also acquire 90 per cent of Panama Ports, which operates the two ports in Balboa and Cristobal, along with CK Hutchison’s controlling interest in 43 other ports in 23 countries.
Trump sparked a furore over the canal when he claimed during his inauguration speech in January that China controls the waterway, a claim that Panama’s president and officials in Beijing have called “lies”.
The Panama Canal was funded by Washington in the early 20th century and controlled by American authorities until 1999, when Panama’s government assumed control following an agreement with the US government.
US Secretary of State Marco Rubio repeated Trump’s claim during a visit last month with Panamanian President José Raúl Mulino in the Central American country.
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