U.S. asset manager BlackRock (BLK) has taken majority stakes in the ports on either side of the Panama Canal in a deal worth $22.8 billion.
BlackRock’s acquisition brings the ports on both sides of the Panama Canal under U.S. control and removes them from the control of CK Hutchison Holdings, a Hong Kong-based company in China. BlackRock is acquiring a 90% interest in the Panama Ports Company alongside Global Infrastructure Partners and container terminal group Terminal Investment.
Panama Ports owns and operates the ports of Balboa and Cristobal within Panama.
Trump Claims
BlackRock’s majority control of the strategic ports near the Panama Canal comes after multiple threats from U.S. President Donald Trump to “take back” the Panama Canal. Trump has frequently claimed that the canal is really being run by China, claims that Panama President Jose Raul Mulino has denied.
However, Mulino said that Panama would not renew membership in China’s “Belt and Road Initiative” following talks with U.S. Secretary of State Marco Rubio in February of this year. The Panama Canal is managed by the Panama Canal Authority, an organization that operates independently of the Panama government.
BLK stock has risen 18% over the last 12 months.
Is BLK Stock a Buy?
BlackRock’s stock has a consensus Strong Buy rating among 15 Wall Street analysts. That rating is based on 13 Buy and two Hold recommendations assigned in the last three months. The average BLK price target of $1,179.54 implies 23.64% upside from current levels.
