In a landmark move, CK Hutchison Holdings, a Hong Kong-based conglomerate, has agreed to sell its controlling interest in a subsidiary managing ports near the Panama Canal to a consortium led by BlackRock Inc. The nearly $23 billion deal, which includes $5 billion in debt, transfers ownership of key ports—including Balboa and Cristobal in Panama—to American corporate control, amid claims from President Donald Trump of Chinese interference in the vital shipping route.

Announced on Tuesday via a filing from CK Hutchison, the transaction hands the BlackRock-led group, which includes BlackRock’s Global Infrastructure Partners and Terminal Investment Limited, oversight of 43 ports across 23 countries. This includes a 90% stake in Panama Ports Company, which operates the strategic Balboa and Cristobal ports. The deal, pending approval from Panama’s government, notably excludes CK Hutchison’s port interests in Hong Kong, Shenzhen, South China, and mainland China.

BlackRock, a New York-based titan managing $11.6 trillion in assets as of December 31, stands to gain significant influence over a waterway critical to global trade, with 70% of its traffic linked to U.S. ports. The Panama Canal, constructed by the United States in the early 20th century to connect its coasts, was handed over to Panama in 1999 under a treaty signed by President Jimmy Carter—a move Trump has repeatedly criticized as a mistake.

The sale follows months of U.S. pressure, intensified by Trump’s assertions that China exerts undue influence over the canal, a claim Panama’s government has firmly denied. In January, Senator Ted Cruz warned that the ports could serve as “observation posts” for China, posing a national security risk. U.S. Secretary of State Marco Rubio echoed these concerns during a February visit to Panama, pressing President José Raúl Mulino to curb Chinese involvement or face consequences. Mulino dismissed any notion of Chinese control, and Panama subsequently withdrew from China’s Belt and Road Initiative, prompting Beijing’s ire.

The deal’s timing aligns with scrutiny of Hutchison Ports, which had secured a controversial 25-year, no-bid contract extension to operate the canal’s key ports. An ongoing audit of that agreement fueled speculation of a rebid, with rumors suggesting a U.S. firm tied to the White House might take over. However, CK Hutchison’s co-managing director, Frank Sixt, insisted the sale was a “purely commercial” decision, stemming from a competitive bidding process unrelated to political pressures.

BlackRock has remained tight-lipped beyond a press release celebrating the acquisition, though its stock dipped 2.1% in Tuesday afternoon trading. For CK Hutchison, the $19 billion in cash proceeds marks a significant divestment, reshaping its global port operations while ceding a geopolitically charged asset to American hands. As the deal awaits Panama’s nod, it signals a new chapter for the canal’s ports, one that could ease U.S. concerns while redefining the balance of influence in this critical trade corridor.