AFTER a lifetime of dealmaking, 96-year-old Hong Kong billionaire Li Ka-shing may have just pulled off one of his boldest transactions yet.

Under pressure from the U.S. Government over two ports at the Panama canal controlled by CK Hutchison Holdings Ltd., Li’s company announced a plan to sell off the bulk of its global ports business to a consortium led by BlackRock Inc. In return, the Hong Kong firm will receive cash proceeds of more than US$19 billion.

A consortium led by BlackRock has struck a US$22.8 billion deal to acquire Balboa and Cristobal, two key ports near the Panama Canal. The deal grants the U.S.-based firm control over the ports that handle cargo entering and exiting the waterway. The Panama Canal Authority, a government agency, continues to oversee canal operations.

In the fiscal year ended last September, over 9,940 ships passed through the Panama Canal, generating a total revenue of US$5 billion, according to data from the Panama Canal Authority. The U.S. is the canal’s largest user, with 70% of its shipping traffic connected to American trade.

CK Hutchison took control of the two major ports in Panama in 1997 and renewed the contract in 2021, extending it until 2047. Adding to the pressure from U.S. Government, Panamanian authorities launched an audit of CK Hutchison’s port contracts earlier this year. The audit, along with legal challenges to its 25-year no-bid extension, suggested mounting obstacles to its continued operation. Rather than face the uncertainty, the Li family chose to exit the business.

Li, once Asia’s richest man, built a vast business empire spanning real estate, telecommunications, and ports. His CK Hutchison controls port operations in over 20 countries, making it a dominant player in global trade. Though retired, Li’s legacy continues under his son Victor Li, who now runs the conglomerate.(SD-Agencies)