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Deal Talk: BlackRock Acquires Panama Canal Ports in $22.8 Billion Power Move

BlackRock Inc. (NYSE: BLK) has acquired 43 ports across 23 countries, including 90% of Panama Ports Company, in a $22.8 billion deal with CK Hutchison. The acquisition gives BlackRock control of Balboa and Cristobal, two critical ports at the gateway of the Panama Canal, a vital choke point for global trade.

March 26, 2025

Good morning. Welcome to The Deal Talk where each week we break down a recent M&A deal.

Today we’re going to dive into BlackRock’s acquisition of 90% of Panama Ports Company, a $22.8 billion deal with CK Hutchison giving BlackRock control of Balboa and Cristobal, two critical ports at the gateway of the Panama Canal, a vital choke point for global trade.

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DEEP DIVE
BlackRock Acquires Panama Canal Ports in $22.8 Billion Power Move

BlackRock Inc. (NYSE: BLK) has acquired 43 ports across 23 countries, including 90% of Panama Ports Company, in a $22.8 billion deal with CK Hutchison. The acquisition gives BlackRock control of Balboa and Cristobal, two critical ports at the gateway of the Panama Canal, a vital choke point for global trade.

The deal follows political pressure from the Trump administration to curb China’s influence over the canal, aligning BlackRock’s interests with U.S. geopolitical priorities. CK Hutchison, facing regulatory scrutiny in Panama, is exiting at a discounted valuation while securing over $19 billion in cash​.

Strategic Rationale

1. Control Over a Global Trade Bottleneck

  • 6% of global trade moves through the Panama Canal, 75% of it U.S.-linked​.

  • Securing Balboa (Pacific) and Cristobal (Atlantic) gives BlackRock direct control over key maritime traffic.

2. U.S. National Security & Geopolitical Leverage

  • The deal blocks China from expanding its influence over Latin America’s largest port system.

  • Trump has framed the acquisition as “reclaiming the canal”, reinforcing BlackRock’s alignment with U.S. strategic interests​, making BlackRock CEO Larry Fink a key power player in Trump’s America. 

3. Infrastructure Power Play & Real Asset Expansion

  • BlackRock’s $12.5B acquisition of Global Infrastructure Partners (GIP) in 2024 enabled this move.

  • Ports generate stable, inflation-hedged cash flows, solidifying BlackRock’s shift from asset management to direct infrastructure control​.

4. Opportunistic Valuation

  • The 13x EV/EBITDA multiple is well below 16–20x seen in similar port deals.

  • CK Hutchison’s regulatory risks forced a quick exit, allowing BlackRock to acquire prime assets below market value​.

Financial Impact & Market Multiples

  • Transaction Value: $22.8 billion

  • Cash Proceeds to CK Hutchison: Over $19 billion

  • Ports Acquired: 43 across 23 countries

  • Stake in Panama Ports Company: 90%

  • 2025 Projected EBITDA: $1.7 billion

  • Implied EV/EBITDA Multiple: ~13x (compared to 16–20x in recent port transactions)

Deal Structure & Financial Advisors

  • Buyer Consortium: BlackRock, Global Infrastructure Partners, Terminal Investment Limited

  • Seller: CK Hutchison

  • Financial Advisor to CK Hutchison: Goldman Sachs

Opinion & Outlook

What Could Go Right?

  • Global Trade Domination – BlackRock now controls critical supply chain assets, ensuring long-term revenue stability.

  • U.S. Policy Advantage – With Trump’s backing, BlackRock avoids regulatory roadblocks and gains leverage for future deals.

  • Infrastructure Megatrend – Real assets are increasingly favored by institutional investors, boosting BlackRock’s competitive edge​.

What Could Go Wrong?

  • Regulatory & Legal Scrutiny – Panama’s government is reviewing the deal, and political opposition could slow or block approval​.

  • China’s Retaliation – Beijing may redirect trade flows or retaliate against BlackRock’s global interests​.

Conclusion

This acquisition cements BlackRock’s shift into infrastructure ownership, reinforcing its role as a dominant force in global trade and geopolitics. The deal is a win for the U.S., a loss for China, and a high-stakes bet for BlackRock. If executed well, this could set the stage for even larger strategic acquisitions—but the risks remain substantial.

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The Deal Talk Team