Hong Kong-based conglomerate CK Hutchison Holding, which operates ports near the Panama Canal, has agreed to sell its stake to a business group including US firm BlackRock. The development comes after President Trump expressed concerns about Chinese interference in the activities of this important trade route that connects the Atlantic and the Pacific.
In documents filed with authorities, conglomerate CK Hutchison Holding said Tuesday it will sell all shares in two of its units, Hutchison Port Holdings and Hutchison Port Group Holdings. The two units account for 80% of the Hutchison Ports group, which operates 43 ports in 23 countries.
The consortium, consisting of BlackRock and Global Infrastructure Partners based in the United States and Terminal Investment Limited based in Switzerland, will acquire 90% of the interests of the Panama Ports Company, which owns and operates the Balboa and Cristobal ports in Panama, according to documentation submitted to the relevant offices.
In January, Senator Ted Cruz, chairman of the Senate Committee on Commerce, Science and Transportation, raised concerns that China could exploit or block passage through the canal and that the ports “give China a favorable position” to take action.
"The situation poses acute risks to the national security of the United States," said Republican Cruz.
US Secretary of State Marco Rubio visited Panama in early February, warning President Jose Raul Mulino that Panama must reduce Chinese influence or face possible action from the United States. President Mulino rejected the idea that China had any control over the canal's operations.
After the visit of the US chief of diplomacy, Panama withdrew from the Chinese initiative "One Belt, One Road", causing strong reactions from Beijing. VOA (A2 Televizion)
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