Blackrock acquires Panama
Canal ports operated by CK Hutchison for $22.8 billion
The BlackRock-TiL Consortium
and CK Hutchison have reached an agreement in principle on Tuesday by which the
BlackRock-TiL Consortium will acquire HPH’s 90% stake in Panama Ports Company,
a subsidiary of a Hong Kong-based multinational, which operates two ports
adjacent to the Panama Canal, for $22.8 billion.
The consortium will also
acquire CK Hutchison's effective and controlling 80% interest in subsidiaries
and associate companies that own, operate and develop a total of 43 ports
comprising 199 berths in 23 countries, together with all of HPH's management
resources, operations, terminal operating systems, IT and other systems, and
other assets related to the control and operations of those ports.
However, this latest
transaction does not include any interest in the HPH Trust, which operates
ports in Hong Kong, Shenzhen and South China, or any other ports in China. The
definitive transaction documentation is expected to be signed on or before
April 2, 2025.
The transaction will be
conducted separately once the Government of Panama confirms the proposed terms
for the purchase and sale. The acquisition will be completed in an expedited
manner, subject to the BlackRock-TiL Consortium performing normal and customary
confirmatory due diligence, settlement of definitive documentation, receipt of
necessary regulatory approvals, among others.
Pending the signing of the
definitive documents, CK Hutchison and HPH have entered into exclusive
negotiation and confidentiality agreements with the BlackRock-TiL Consortium,
which will have full access to information and documentation for the purposes
of performing confirmatory due diligence.
Blackrock Chairman and CEO
Larry Fink said that this agreement is “a powerful illustration” of the
combined BlackRock and GIP platform and its ability to offer differentiated
investments for clients. “These world-class gateways facilitate global growth.
We are delighted that our clients can participate in this investment,” he said.
On behalf of Global
Infrastructure Partners (GIP), a part of BlackRock, GIP President and CEO Bayo
Ogunlesi said they are “delighted” to partner with Terminal Investment Limited
and MSC, with whom they have a long-standing and productive relationship, to
bid for certain interests in ports owned and operated by Hutchison Ports.