A $23 billion global ports acquisition, which includes strategic terminals at the Panama Canal, is facing fresh uncertainty after China’s state-owned shipping giant COSCO Shipping demanded a majority stake in the transaction, people familiar with the talks say.
Background of the deal
In March 2025, Hong Kong-based conglomerate CK Hutchison Holdings announced plans to sell its network of 43 port terminals in 23 countries to a consortium led by BlackRock and Mediterranean Shipping Company’s Terminal Investment Limited (TiL). The portfolio includes the Balboa and Cristóbal ports, both located at opposite ends of the Panama Canal and regarded as critical connections for global maritime trade.
Under the original structure, BlackRock was expected to take control of the Panama Canal ports, while MSC would hold the majority of the remaining assets around the world.
Cosco’s Intervention
As part of an effort to secure regulatory approval in China, COSCO — a major Chinese state-owned shipping and port operator — was initially invited to take a 20–30 % stake in the deal. However, sources now say that COSCO has pushed for a controlling (majority) share in the consortium, a demand that has alarmed BlackRock and MSC and could derail the deal. It is unclear whether COSCO’s latest position is a negotiation tactic or reflects directives from Beijing.
If COSCO insists on majority ownership, BlackRock and MSC are reportedly considering walking away from the agreement entirely.
Geopolitical Stakes and Reactions
The proposed ports sale has been tightly intertwined with broader geopolitical tensions between the United States and China. U.S. political leaders, including President Donald Trump, have championed the deal as a strategic move to reduce Chinese influence over key global infrastructure — particularly the Panama Canal region. China, for its part, has labeled the transaction a potential threat to its national interests and has subjected it to regulatory scrutiny despite the absence of Chinese mainland assets in the sale.
Chinese regulators have even required the consortium to submit to a merger review in China, which has further complicated the approval process. Talks among the consortium partners, COSCO, and authorities in both the United States and China are ongoing. Observers say the deal’s future could hinge on U.S.–China relations in 2026 and whether a compromise over COSCO’s role can be reached.
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Source: Panama Canal
