BlackRock's $22.8 Billion Panama Ports Deal Threatened by China

BlackRock's (BLK) stock dropped as China threatened to block its $22.8 billion Panama Ports deal with CK Hutchison due to concerns over state-owned shipping giant Cosco not being an equal partner and shareholder. BlackRock and MSC are reportedly open to Cosco taking a stake, but a deal must be reached before the July 27 deadline for exclusive talks. The proposed sale includes two ports at either end of the Panama Canal and more than 40 others around the world.

China has threatened to block a $22.8 billion deal for more than 40 global ports, including two at the Panama Canal, if state-owned shipping giant Cosco is not included as an equal partner, according to reports from The Wall Street Journal. The deal, which involves BlackRock (BLK) and Mediterranean Shipping Company (MSC), is currently under exclusive talks that are set to expire on July 27.

BlackRock, MSC, and CK Hutchison, the Hong Kong conglomerate owned by tycoon Li Ka-shing, have expressed openness to including Cosco in the deal. However, reaching a consensus before the deadline remains uncertain. The proposed sale would transfer ownership of the ports, valued at nearly $23 billion, to BlackRock and MSC, positioning MSC as the world's largest terminal operator.

The threat from China comes amid broader U.S.-China tensions. Chinese officials have instructed state-owned enterprises to suspend transactions with Hutchison or companies linked to its parent firm. The inclusion of Cosco emerged as a way to advance the deal following intense trade talks in Switzerland. If the deal fails to include Cosco, China has warned it would take steps to block the sale.

The potential involvement of Cosco has sparked concerns from U.S. President Donald Trump, who has expressed his desire to reduce Chinese influence around the Panama Canal. The deal has drawn attention due to its strategic importance and the potential geopolitical implications.

References:
[1] https://www.tradingview.com/news/reuters.com,2025:newsml_L4N3TE0P5:0-china-threatens-to-block-panama-ports-deal-unless-its-shipping-giant-gets-stake-wsj-reports/
[2] https://www.investing.com/news/economy-news/china-threatens-to-block-23-billion-port-deal-if-stateowned-cosco-is-excluded-4139549
[3] https://nypost.com/2025/07/17/business/china-threatens-to-squash-panama-ports-deal-unless-its-shipping-giant-gets-an-equal-stake-report/