With an estimated value of 22.8 billion dollars, this operation, to be finalized on April 2, changes the global trade panorama and re-shapes the competition in a sector that is considered highly profitable.
The port business is one of the most coveted worldwide due to its ability to generate long-term stable revenues and the high barriers to entry, which include infrastructure costs, strict regulations and the need for long-term government concessions.
That is why the sale of such a large portfolio of ports in a single transaction is not only unusual, but represents a unique opportunity for BlackRock and its partners to consolidate their presence in global trade.
The newspaper La Prensa indicates that in a matter of days and through virtual meetings and telephone calls, the agreement was closed in principle with BlackRock and its partners Global Infrastructure Partners (GIP) and Terminal Investment Limited (TIL), a negotiation dominated by the US President, Donald Trump, who once again threatened to retake the Canal to end an alleged control by China.
In that sense, he points out that CK Hutchinson made this decision due to a combination of financial and political pressures, since in the last five years, the Chinese company has suffered a 40 percent drop in its market value.
On the other hand, there is also the growing political pressure, since before his arrival to the Oval Office, the Republican magnate expressed his intention to reduce China’s influence in the port sector, especially in the Panama Canal.
The national newspaper even quoted the British newspaper Financial Times, stating that Trump was told about the transaction in a private meeting, which reinforces the theory that this agreement has geopolitical implications beyond the commercial aspect between two companies.
In that sense, they place the operation not only as a change of hands in the ownership of strategic ports, but also as part of the global competition between the United States and the Asian nation.
In recent years, Washington has tried to counteract China’s growing influence in Latin America and the port sector, key to international trade, it has become a point of dispute.
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