A consortium comprising BlackRock and Terminal Investment Limited (TiL) has reached an agreement in principle with CK Hutchison to acquire a significant portion of its global port assets for an enterprise value of $22.8 billion.
The proposed acquisition includes Panama Ports Company (PPC) and Global Port Portfolio.
On PPC, BlackRock-TiL will acquire CK Hutchison’s 90% stake in PPC, which operates the strategically important ports of Balboa and Cristobal in Panama. This transaction is contingent on approval from the Panamanian government.
For Global Port, the consortium will acquire CK Hutchison’s 80% effective and controlling interest in a network of 43 ports, encompassing 199 berths across 23 countries. This includes all operational and management resources, excluding ports in Hong Kong, Shenzhen, and mainland China (operated by HPH Trust).
The PPC transaction will proceed separately upon confirmation of terms by the Government of Panama. The global port portfolio acquisition is set to move forward rapidly, pending standard due diligence, final documentation, and regulatory approvals.
The $22.8 billion enterprise value covers 100% of the acquired assets, including the Panama ports. The allocation of proceeds between the two transactions has been agreed in principle. CK Hutchison anticipates net cash proceeds exceeding $19 billion after adjustments. Definitive documentation for the Panama transaction is expected by April 2, 2025.
During due diligence, BlackRock-TiL will have exclusive access to information and documentation.
