Hong Kong's CK Hutchison on Tuesday agreed to sell its interests in a key Panama Canal port operator to a BlackRock Inc-backed consortium, following intense pressure from US President Donald Trump.

The US$22.8 billion sale, which also includes dozens of ports in other countries, appeared to be a win for Trump's aggressive diplomacy just hours before he is due to tout the successes of the first six tumultuous weeks of his second term in an address to the US Congress. Trump had refused to rule out military action to assert US control over the canal.

Trump has complained about the presence of Mainland Chinese and Hong Kong-based companies in Panama, while US officials and politicians have said CK Hutchison's control of ports at both entrances of the canal represents a security risk for the operation.

The sale of licenses will result in the consortium gaining a 90 percent stake in Panama Ports Company, which has been the operator of the Balboa and Cristobal ports in the Central American country for more than two decades, CK Hutchison said in a statement.

BlackRock has briefed the White House and Congressional leadership on the deal, a person familiar with the transaction said.

This would be BlackRock's largest infrastructure investment to date, that person said.

The US State Department, White House, National Security Council and Panama's government did not immediately respond to requests for comment.

CK Hutchison is a publicly listed company not financially tied to the Chinese government, though Hong Kong firms are subject to state oversight. Other ports in Panama are operated by companies from the US, and Singapore.

The canal is operated by the Panama Canal Authority, an autonomous agency overseen by the Panamanian government.

Panama's authorities have announced an audit of CK Hutchison's contract, saying they are investigating its compliance with concession agreements. Panama's attorney general determined earlier this month that CK Hutchison's port contract was "unconstitutional." The Supreme Court was to have had the last word on its legal status.

US Secretary of State Marco Rubio made his first overseas trip as top U.S. diplomat to Latin America last month, including to Panama, where he pressured the country over China's presence along the canal. After his departure, Rubio hailed Panama's decision to exit China's Belt and Road infrastructure plan, and he has expressed optimism in media interviews that Hutchison would not own the ports in the future.

The sale of Panama ports licenses held by the unit of billionaire Li Ka-shing's conglomerate to a consortium that includes BlackRock, Global Infrastructure Partners and Terminal Investment will give it control of an 80 percent interest in Hutchison Ports for an equity value of US$14.21 billion.

It will get control of 43 ports comprising 199 berths in 23 countries while delivering cash proceeds in excess of US$19 billion for the Hong Kong-based consortium.

The sale does not involve any interest in Hutchison Port Holdings Trust, which operates ports in Hong Kong and Shenzhen, as well as South China, or any other ports in Mainland China, CK Hutchison said.

The consortium has agreed that negotiations will be on an exclusive basis for a period of 145 days, the company said.

BlackRock completed the acquisition of Global Infrastructure Partners for approximately US$12.5 billion in cash and stock last October. At the time, chairman and CEO Larry Fink described infrastructure as “a generational investment opportunity.” (Reuters)