The BlackRock-TiL Consortium, comprising BlackRock Inc., Global Infrastructure Partners (GIP), and Terminal Investment Limited (TiL), has announced in-principle agreements with CK Hutchison Holdings Limited (“CK Hutchison”) to acquire significant port assets owned and operated by Hutchison Port Holdings (“HPH”), according to CK Hutchison Holdings's release.
The agreements include:
-The acquisition of HPH’s 90% stake in Panama Ports Company, which operates the ports of Balboa and Cristobal in Panama.
-The acquisition of CK Hutchison’s 80% effective and controlling interest in subsidiary and associated companies, encompassing 43 ports with 199 berths across 23 countries, along with management resources, terminal operating systems, and related assets.
The HPH Transaction excludes interests in the HPH Trust, which operates ports in Hong Kong, Shenzhen, and South China, as well as any other ports in China.
The PPC Transaction is contingent on confirmation by the Government of Panama, while the HPH Transaction will proceed subject to confirmatory due diligence, definitive documentation, and regulatory approvals. The aggregate enterprise value for 100% of the HPH Ports Sale Perimeter, including the Panama Ports, has been agreed at $22.8 billion.
Larry Fink, Chairman and CEO of BlackRock, stated, “This agreement is a powerful illustration of BlackRock and GIP’s combined platform and our ability to deliver differentiated investments for clients.” Bayo Ogunlesi, Chairman and CEO of GIP, emphasized, “We are delighted to partner with Terminal Investment Limited and MSC to make an offer for certain interests in ports owned and operated by Hutchison Ports Holdings.”
Diego Aponte, Chairman of TiL and President of the MSC Group, added, “We are very pleased to partner with BlackRock and GIP, and we look forward to welcoming the Hutchison Ports management team into our larger family.”
Frank Sixt, Co-Managing Director of CK Hutchison, noted, “The Transaction valuation agreed in principle is compelling and clearly in the best interest of our shareholders. After adjustments, the Transaction is expected to deliver cash proceeds in excess of $19 billion to our Group.”
The definitive documentation for the PPC Transaction is expected to be signed by 2 April 2025.
BlackRock is the world’s largest asset manager, with over $10 trillion in assets under management as of 2023, offering investment management, risk management, and advisory services.
Global Infrastructure Partners is a leading independent infrastructure investor, specializing in energy, transport, and water/waste sectors, with over $100 billion in assets under management.
Terminal Investment Limited is the port investment arm of the Mediterranean Shipping Company (MSC), focusing on the development and operation of container terminals worldwide.
CK Hutchison Holdings Limited is a multinational conglomerate with diversified businesses in ports, retail, infrastructure, and telecommunications, operating in over 50 countries.