Nigeria’s Adebayo Ogunlesi Leads BlackRock’s Panama Port Acquisition

Adebayo Ogunlesi, Founding Partner, Chairman, and Chief Executive Officer of Global Infrastructure Partners (GIP), a subsidiary of BlackRock, is spearheading a major acquisition of key port operations near the Panama Canal.

The deal, valued at approximately $23 billion, will see BlackRock acquire over 40 ports, including those at either end of the canal, from Hong Kong-based conglomerate CK Hutchison. The move follows months of scrutiny from former U.S. President Donald Trump, who has criticised Panama’s control over its most valuable asset, the Panama Canal.

Panamanian President José Raúl Mulino sought to downplay geopolitical concerns surrounding the acquisition, describing it in a social media post as “a global transaction between private companies, motivated by mutual interests.”

As part of the agreement, GIP will manage the newly acquired assets in partnership with Terminal Investment Limited (TIL) and other strategic partners. Under Ogunlesi’s leadership, GIP has grown into the world’s largest independent infrastructure manager, overseeing more than $100 billion in assets, including $60 billion in infrastructure equity funds.

For BlackRock, this acquisition marks another step in its strategy to expand beyond traditional stock and bond fund management. The company acquired GIP last year for nearly $13 billion, strengthening its portfolio of infrastructure assets, including ports, airports, and data centres.

Negotiations between the BlackRock-led consortium and CK Hutchison, controlled by Asia’s influential Li family, began weeks ago. According to reports from The New York Times, the Li family faced political pressure to divest its port operations, particularly its holdings in the Panama Canal.

The Panama Canal remains a critical global trade route, linking the Pacific and Atlantic Oceans. Although vessels are not required to stop at Panama’s ports to transit the canal, the strategic importance of the region has led to ongoing debates over control. Trump has previously expressed a desire for the U.S. to regain authority over the waterway, which was handed over to Panama in 2000.

In a joint statement, the BlackRock-led consortium and CK Hutchison confirmed that they had reached an agreement in principle under which the BlackRock-TIL consortium will acquire a 90% stake in Panama Ports Company, the entity that owns and operates the ports of Balboa and Cristobal.

“The transaction will proceed separately on confirmation by the Government of Panama of the proposed terms of the purchase and sale. Acquisition of the HPH Ports Sale Perimeter will proceed on an expedited basis, subject to the BlackRock-TiL Consortium conducting normal and usual confirmatory due diligence, settlement of definitive documentation, and receipt of any necessary regulatory approvals, among others.

“The aggregate enterprise value for 100 per cent of HPH Ports Sale Perimeter, including the Panama Ports, has been agreed at $22.8 billion. The allocation of transaction proceeds between the PPC transaction and the HPH transaction has also been agreed in principle. 

“Fundamental and Essential Terms of the PPC Transaction and the HPH Transaction have also been agreed in principle, subject to definitive documentation. The PPC Transaction definitive documentation is expected to be signed on or before 2nd April 2025.

“Pending signature of the definitive documents, CK Hutchison and HPH have entered into exclusive negotiation and non-disclosure arrangements with the BlackRock-TiL Consortium, which will be given full access to information and documentation for purposes of conducting confirmatory due diligence,” the statement said.

Speaking on behalf of Global Infrastructure Partners (GIP), a part of BlackRock, GIP Chairman and Chief Executive Officer, Ogunlesi, said: “We are delighted to partner with Terminal Investment Limited and MSC, with whom we have a longstanding and productive relationship, to make an offer for certain interests in ports owned and operated by Hutchison Ports Holdings.

“Given GIP’s substantial expertise in owning and operating ports, together with our partners, we can focus on our joint ambition for these assets to continue to be world-class port operators which are competitive, efficient, commercial and service-focused.”

Speaking on behalf of Terminal Investment Limited (TiL), Chairman of TiL and President of the MSC Group, Diego Aponte, said, “Our relationship with Hutchison Ports goes back a long way and is a relationship of mutual respect and friendship. 

“Furthermore, we are very pleased to partner with BlackRock and Global Infrastructure Partners (GIP), with whom we share a longstanding relationship. We have a very high regard for the Hutchison Ports management team, and once this transaction closes, we look forward to welcoming them into our larger family. We are very focused on this industry, and we know that the investment in Hutchison Ports will be a very viable investment commercially.”

Speaking on behalf of CK Hutchison, Co-Managing Director Mr. Frank Sixt said:

“This transaction is the result of a rapid, discrete, but competitive process in which numerous bids and expressions of interest were received. 

“As a result, the transaction valuation agreed in principle is compelling, and the transaction is clearly in the best interest of our shareholders. After adjusting for minority interests and repayment of certain shareholder loans due from HPH to CK Hutchison, the transaction would be expected to deliver cash proceeds of over US$19 billion to our group. 

“I would like to stress that the transaction is purely commercial and wholly unrelated to recent political news reports concerning the Panama Ports.

“It must be noted that, however, the transaction does remain subject to confirmatory due diligence, settlement of definitive documentations, and normal and usual completion procedures, adjustments and conditions, as well as compliance by HPH with the rights of minority shareholders under existing shareholder agreements relating to the sold HPH interests.”

This is BlackRock’s largest infrastructure deal ever, and it is doing the deal with a partner known as Terminal Investment Limited, which operates ports served by the world’s largest container shipping company, Mediterranean Shipping.

Thisday