Nigerian billionaire, Adebayo Ogunlesi, is leading BlackRock's $23 billion acquisition of key port operations near the Panama Canal from Hong Kong conglomerate, CK Hutchison. The acquisition includes the ports of Balboa and Cristobal, which are situated at either end of the Canal, a critical asset that has been a source of contention for the U.S. President Donald Trump who has accused Panama of charging excessive fees.
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Ogunlesi, the Founding Partner, Chairman & Chief Executive Officer of Global Infrastructure Partners (GIP), a subsidiary of BlackRock, will manage the newly acquired assets in partnership with Terminal Investment Limited (TIL) and other strategic investors. This deal underscores BlackRock's efforts to expand its portfolio beyond traditional stock and bond funds into infrastructure investments.
The agreement comes as Trump has been advocating for the U.S. to regain control of the Canal, which was handed over to Panama in 2000. The acquisition is significant as it involves the world's largest independent infrastructure manager, which oversees over $100 billion in assets.
The deal is structured with BlackRock-TiL Consortium purchasing 90 per cent interests in Panama Ports Company, with the allocation of transaction proceeds agreed upon in principle. The companies are awaiting government confirmation of the terms and regulatory approvals.
BlackRock's Chairman and Chief Executive Officer, Larry Fink, commented on the deal, stating, "These world-class ports facilitate global growth. Through our deep connectivity to organizations like Hutchison and MSC/TIL and governments around the world, we are increasingly the first call for partners seeking patient, long-term capital. We are thrilled our clients can participate in this investment."
The transaction is subject to confirmatory due diligence, final documentation, and regulatory approvals, with the signing of the PPC Transaction definitive documentation expected before April 2, 2025. The consortium will operate under exclusive negotiation and non-disclosure agreements with full access to necessary information and documentation.