BlackRock, a major American investment firm, has made a significant deal to purchase two key ports at either end of the Panama Canal from a Hong Kong company. The ports, Balboa and Cristobal, are crucial gateways for shipping and trade.
This acquisition comes amid past concerns from former President Donald Trump, who expressed intentions to reclaim control over the Panama Canal. Trump often mentioned that he believed control had shifted to China due to foreign ownership of port operations. He had previously claimed that, despite the canal being returned to Panama in 1999, it was still largely influenced by China.
The deal, worth $22.8 billion, will allow BlackRock and its partners to take over not only the two ports but also a control stake in 43 other ports across 23 countries. Notably, these acquisitions do not include any ports in China or Hong Kong.
BlackRock’s CEO, Larry Fink, highlighted the importance of these ports in promoting global trade. He stated that their investment would help meet the growing demand for long-term capital in the industry.
With over $11.6 trillion in assets, BlackRock is one of the largest asset managers globally. This massive sum represents about 40% of the total U.S. economy, showcasing BlackRock’s influence. The firm does not fully control numerous high-profile companies but holds significant stakes in giants like Walmart, Apple, and Amazon.
The Panama Canal itself has a rich history. Built by the U.S. and finished in 1914, it helped revolutionize maritime trade. After it was handed over to Panama in 1999, it has continued to be essential not only for international business but also for U.S. military operations, as around 4% of the world’s trade passes through it.
The canal also plays a vital role in Panama’s economy. In 2024, it generated nearly $5 billion in profits, accounting for over 23% of the nation’s annual income, according to a study by IDB Invest.
Even with Trump’s previous claims, the canal has been operated by Panama since the handover in 1999, not China. The White House has yet to comment on this recent deal, although it might help ease some concerns about foreign control over such an important asset.
Trump and some U.S. officials have sought to address issues related to fees charged to American vessels navigating the canal. Previous statements emphasized the expectation that U.S. ships should not have to pay to use a waterway that the U.S. has committed to protect.
This acquisition reflects ongoing discussions about the U.S. position in Panama and the strategic importance of the canal in global shipping and security.
