Trump Praises 'Reclaiming' of Panama Canal Following BlackRock's Deal to Acquire Stake

US President Donald Trump has praised a deal led by US firm BlackRock to acquire the majority of Hong Kong conglomerate CK Hutchison's $22.8 billion ports business, which includes assets along the Panama Canal.

The agreement will grant the US consortium control of key Panama Canal ports, despite White House calls to remove them from what it claims is Chinese ownership. However, it risks exacerbating tensions between the United States and Panama, which have already clashed over Trump's claims about the canal.

"My administration will reclaim the Panama Canal, and we have already begun doing so," Trump told the US Congress.

"Just today, a large American company announced they are buying both ports around the Panama Canal and lots of other things having to do with the Panama Canal and a couple of other canals."

On Wednesday morning, Panamanian President Jose Raul Mulino said Trump was "once again lying" in a post on Twitter.

"The Panama Canal is not in the process of being reclaimed ... the Canal is Panamanian and will continue to be Panamanian!" According to CK Hutchison, the deal with the BlackRock-led consortium includes 90% of Panama Ports Company, which has operated the Balboa and Cristobal ports at each end of the canal for more than two decades.

The consortium, which includes Terminal Investment and Global Infrastructure Partners, will control 43 ports and 199 berths across 23 countries, according to the conglomerate.

The high purchase price sent CK Hutchison's stock up more than 20% on Wednesday, outpacing the 2.8% rise in Hong Kong's broader Hang Seng Index. Its current price is the highest since August 1, 2023.

The sale involves CK Hutchison's 80 percent stake in Hutchison Ports, which is worth $14.21 billion. However, the conglomerate will receive more than $19 billion after repaying some shareholder loans.

Goldman Sachs is advising CK Hutchison on the transaction, according to two sources familiar with the matter. Goldman Sachs has declined to comment.

Due to the high-profile nature of the transaction, John Waldron, the president of Goldman Sachs, was among the senior bankers involved in the discussions, according to a third person familiar with the talks. The source also revealed that Goldman Sachs bankers in Hong Kong were involved.

The proceeds would be comparable to CK Hutchison's total Hong Kong market value before Wednesday's share rally.

Singapore's PSA International owns the remainder of Hutchison Ports.

Last year, approximately 12,000 ships used the Panama Canal, which connects 1,920 ports in 170 countries. Its location is strategic for the United States, as more than 75% of vessels passing through originate in or are bound for the country.

"I would like to stress that the transaction is purely commercial in nature and wholly unrelated to recent political news reports concerning the Panama Ports," CK Hutchison co-managing director Frank Sixt said in a statement.

Trump has repeatedly claimed that the Canal is under Chinese influence, despite the fact that CK Hutchison is based in Hong Kong.

Hong Kong returned from British to Chinese rule in 1997 with the assurance that its freedoms, including free speech, would be safeguarded under a "one country, two systems" policy.

Mulino stated on Thursday that Trump's so-called "reclaiming" of the Canal was not part of discussions with the US.

Secretary of State Marco Rubio during a recent visit, or with any other US official.

The United States controlled the Canal and the surrounding area until 1977, when it signed treaties granting Panama control and sovereignty over the canal zone while guaranteeing its permanent neutrality. The treaties took effect in 1999.