BlackRock-TiL Consortium's $22.8bn Acquisition of Hutchison Ports Assets
- katerinageorgiou5
- 6 days ago
- 7 min read
By Jens Bager, Sam Elfström, Elliot Christophers (Stockholm School of Economics); Annabel Lai, Edward Fung, Kelvin Chan, Krist Ou (Hong Kong University of Science and Technology)
Photo: Lucas Van Oort (Unsplash)
Overview of the deal
Acquirer: BlackRock, Global Infrastructure Partners, and Terminal Investment Limited
Target: Hutchison Ports Holdings
Total Transaction Size: $22.8bn
Implied Equity Value: $14.2bn
Closed Date: Under regulatory review
Target Advisors: Goldman Sachs(Financial), Paul Hastings LLP (Legal)
Acquirer Advisors: N/A (Financial); Weil, Gotshal & Manges LLP (Legal)
On March 4, 2025, the BlackRock-TiL consortium, comprising financial giant BlackRock, Global Infrastructure Partners (GIP), a part of BlackRock, and Terminal Investment Limited (TiL), announced that it will acquire CK Hutchison Holdings' 90% interest in the Panama Ports Company and a total of 43 ports comprising 199 berths in 23 countries, from Hutchison Port Holdings (HPH) $22.8 billion. The deal excludes HPH's interest in key Chinese ports, including but not limited to Hong Kong and Shenzhen.
The transaction is a powerful illustration of BlackRock and GIP’s combined platform, which would be BlackRock's largest infrastructure investment to date. It is expected to reshape the landscape of global port operations, pending the completion of the necessary procedures. BlackRock has defined infrastructure as a “generational investment opportunity” and is well-positioned to capitalize on the long-term structural trends that will continue to drive the growth of infrastructure and deliver superior investment opportunities for clients globally.
The sale would be expected to deliver cash proceeds in excess of $19 billion to CK Hutchison. Prior to the transaction, the U.S. president had complained about the presence of Chinese and Hong Kong-based companies in Panama, and American officials and politicians had said that CK Hutchison's control of the ports represented a security risk to the operation. The deal is currently under regulatory review from China on the grounds of fair competition.
“This agreement is a powerful illustration of BlackRock and GIP’s combined platform and our ability to deliver differentiated investments for clients. These world-class ports facilitate global growth. Through our deep connectivity to organizations like Hutchison and MSC/TIL and governments around the world, we are increasingly the first call for partners seeking patient, long-term capital.”- Larry Fink, BlackRock Chairman and CEO
Company Details (Acquirer - BlackRock)
BlackRock, founded in 1988 and based in New York City, is a leading global investment manager known for its vast scale. As of December 31, 2024, it manages over $11.6 trillion in assets, making it the world's largest asset manager, serving a wide range of clients, including institutions, intermediaries, and individuals.
In private markets, BlackRock manages $212 billion in assets with over 20 years of experience in private equity and private credit. The firm leverages its global scale to offer clients diversified investment opportunities, aiming for higher returns and complementing public market holdings.
On October 1, 2024, BlackRock acquired Global Infrastructure Partners, the world’s largest independent infrastructure manager with over $100 billion in AUM, integrating it as a private markets infrastructure investment platform.
Founded in 1988, headquartered in New York, USA
CEO: Larry Fink
Number of employees: ~22,000
Market Cap: $136.2bn (As of April 14, 2024)
Enterprise Value (EV): $137.7bn (As of April 14, 2024)
LTM Revenue: $21.0bn (As of 31 March, 2025)
LTM EBITDA: $8.8bn (As of 31 March, 2025)
LTM EV/Revenue: 6.6x
LTM EV/EBITDA: 16.5x
Company Details (Acquirer - Terminal Investment Limited)
Terminal Investment Limited (TiL), founded in 2000 and headquartered in Geneva, Switzerland, is a leading global port operator.
As one of the largest and most diverse container terminal operators, TiL has a varied portfolio of container terminals strategically located at key ports along the world's major shipping routes, providing access to both mature and developing markets. It has a significant presence at some of the world's busiest ports by container volume, including Singapore, Ningbo, Busan, Los Angeles, Long Beach, Rotterdam, Antwerp, New York / New Jersey, and Valencia.
As of 2023, TiL has over 62 km of quay, more than 30,000 employees worldwide, over 500 ship-to-shore cranes, and a throughput of approximately 65 million TEUs
Founded in 2000, headquartered in Geneva, Switzerland
CEO: Ammar Kanaan
Number of employees: 30,000+
Market cap: N/A
Enterprise Value (EV): N/A
LTM Revenue: N/A
LTM EBITDA: N/A
LTM EV/Revenue: N/A
LTM EV/EBITDA: N/A
Company Details (Target - Hutchison Port Holdings)
Hutchison Port Holdings is a subsidiary of CK Hutchison, a Hong Kong-based conglomerate, operating ports globally, including the Balboa and Cristobal ports on the Panama Canal. Hutchison Port Holdings operates a network of 52 ports across 27 countries, making it one of the world’s largest port operators by throughput. Its facilities handle a wide range of cargo types, including containerized goods, bulk commodities, and general cargo. The company plays a strategic role in global trade routes, with key terminals in Asia, Europe, the Americas, and the Middle East.
Founded in 1994, headquartered in Hong Kong
CEO: Ivor Chow
Number of employees: 30,000+
Market Cap: $1.19bn (As of April 13, 2025)
EV: $22.8bn
LTM Revenue: $1.5bn
LTM EBITDA: $760.5m
LTM EV/Revenue: 15.3x
LTM EV/EBITDA: 3.0x
Projections and Assumptions
Short-Term Consequences
The proposed deal is expected to have significant short-term effects across financial and geopolitical domains.
Under the agreement, TiL will acquire 41 of the 43 ports outright, while the remaining two in Panama will be co-owned: BlackRock’s GIP holds a 51% majority stake, with TiL retaining 49%. Financially, the deal is expected to generate over $19 billion in cash for CK Hutchison, significantly enhancing the company's liquidity and providing capital for potential reinvestment or debt reduction. However, the announcement has led to volatility in CK Hutchison's stock price, with shares dropping over 18% since March 13, 2025, reflecting investor concerns over the transaction's uncertainties and potential regulatory hurdles.
For BlackRock and TiL, the deal is a bold strategic move to expand their global infrastructure footprint, especially in maritime logistics. In the near term, the group will likely face operational challenges due to the broad geographic spread of the assets, with integration and regulatory compliance being immediate priorities.
The deal has attracted scrutiny from Chinese authorities and state-affiliated media, which have criticized the sale as detrimental to national interests. Concurrently, China’s antitrust regulator has launched a review that could delay or jeopardize the transaction. Additionally, the Panamanian government's audit of the port concessions introduces further complexity, as any findings of irregularities could impact the deal's finalization.
Taken together, these dynamics may postpone the deal’s closure, inflate advisory and legal costs, and compel both parties to reassess transaction terms or structure.
Long-Term Upsides
Looking beyond the immediate short-term effects, this deal represents a significant step for BlackRock in its efforts to expand private market and infrastructure investments. BlackRock spokespeople have highlighted two main rationales for this direction. On a general level, private market investments offer potentially higher returns compared to BlackRock's traditional business of selling low-cost passive investment products, such as exchange-traded funds (ETFs). While these passive funds have experienced substantial growth over the past decade, the expansion has put intense downward pressure on fees. Investing in alternative assets thus presents BlackRock with an opportunity to earn higher fees.
Secondly, and more specifically, Blackrock’s increased focus on global infrastructure investments capitalizes on structural shifts in the global economy. As governments worldwide face growing budget deficits, the financing of critical infrastructure is increasingly being opened to private capital. Such assets provide cash flows that often prove more stable and predictable than many other asset classes. Additionally, infrastructure investors can expect favourable government policies and substantial subsidies, exemplified by initiatives like the Inflation Reduction Act and CHIPS Act in the United States, and the Connecting Europe Facility and European Chips Act in the European Union.
Risks and Uncertainties
Deeply entangled in ongoing U.S.-China tensions, the deal faces significant uncertainty. The two Panama ports involved have come under particular scrutiny and are now subject to a Panamanian government audit. That said, it should be noted that these ports represent only 4% of the total deal value. While sure to cause major headlines, a blocking of the sale for these ports would not necessarily cause a spill-over effect on the deal’s remaining 41 ports located in other countries.
Estimating the outcome of the review by China’s antitrust regulator is difficult. For one, it is unclear whether the review is limited to the ports in Panama or applies to all 43 ports included in the transaction. None of the ports are located in China or Hong Kong, and the holding company of CK Hutchison is based in the Cayman Islands. Nevertheless, the deal cannot be definitively considered outside of China’s regulatory reach. CK Hutchison still maintains a presence in China and Hong Kong and could therefore be subject to Chinese repercussions. China has both anti-monopoly laws and national security laws that allow it to review foreign-to-foreign transactions under certain conditions.
While BlackRock CEO Larry Fink has stated that global trade is “only going to get larger and stronger”, the high volatility surrounding tariffs, counter-tariffs, and exemptions raises questions about how global supply chains – and the ports that support them - will adapt in both the short and long term.
As the transaction is structured into a separate account, the BlackRock-TiL Consortium may face significant exit liquidity risks in the case that assets underperform. While Hutchison has stated that they received multiple bids on the transaction, indicating demand for the assets, an outright sale with multiple underperforming ports may pose significant financial risks. Another avenue may be to divest parts of the asset portfolio on an asset-by-asset basis. However, these options may be cumbersome and may result in the assets being valued lower due to the absence of a portfolio premium, further indicating risks in a scenario where an exit is demanded from investors.
“We are very pleased to partner with BlackRock and Global Infrastructure Partners (GIP), with whom we share a longstanding relationship… we know that the investment in Hutchison Ports will be a very viable investment commercially” - Diego Aponte, Chairman of TiL and President of MSC