BlackRock Drops 3.3% Amid $22.8B Port Acquisition

On April 3, 2025, BlackRock's stock dropped 3.3% in pre-market trading, reflecting investor concerns and strategic shifts within the company.

BlackRock, the global asset management giant, has entered into a significant transaction with Long and Company, a subsidiary of Cheung Kong Holdings. According to the agreement, Long and will sell its core port business, including two key ports in the Panama Canal and 43 other ports worldwide, to a consortium led by BlackRock for $22.8 billion. This acquisition will add approximately 100 port assets to BlackRock's portfolio, further solidifying its leadership in the global infrastructure sector.

This transaction marks a major strategic shift for Long and. The sale of these core port assets will provide the company with approximately $19 billion in cash, which will be used to optimize its asset-liability structure and fund future acquisitions and reorganizations. The move has been well-received by the market, with Long and's stock surging over 24% intraday following the announcement.

For BlackRock, this acquisition is part of a broader transformation into a major infrastructure investor. Over the past 14 months, BlackRock has acquired Global Infrastructure Partners (GIP) and HPS Investment Partners, among others, shifting its focus from traditional asset management to infrastructure investment. The completion of this transaction will diversify BlackRock's global port investment portfolio and inject new vitality into the capital markets of Asia and the Middle East.

The transaction has also drawn international attention due to the geopolitical significance of the assets involved, particularly the ports in the Panama Canal. The U.S. government has expressed high concern and called for a reassessment of the potential impacts. Meanwhile, China's Ministry of Commerce and Ministry of Foreign Affairs have also voiced concerns, emphasizing their opposition to the use of economic means to coerce other countries. Despite these concerns, BlackRock has maintained its acquisition plans, emphasizing that the transaction is aimed at enhancing infrastructure control rather than direct geopolitical intervention.