Latest news with #BlackRockInc
2 days ago
- Business
Hong Kong's CK Hutchison seeks Chinese investor to join Panama Ports deal
HONG KONG -- A Hong Kong conglomerate that's selling ports at the Panama Canal said Monday it may seek a Chinese investor to join a consortium of buyers, a move that could please Beijing but bring more U.S. scrutiny to the geopolitically fraught deal. CK Hutchison Holdings' initial plan to sell port assets in dozens of countries to a group that includes U.S. investment firm BlackRock Inc. pleased President Donald Trump, who has alleged that China interferes with the critical shipping lane's operations in Panama. However, they apparently angered Beijing and drew a review from Chinese anti-monopoly authorities. A Beijing-backed newspaper posted scathing commentaries about the deal, with one describing it as a betrayal of all Chinese. Beijing's offices overseeing Hong Kong affairs have reposted some of these commentaries, widely seen as an indication of Chinese leaders' stance. A Hutchison subsidiary has operated ports at both ends of the Panama Canal since 1997. After months of uncertainty brought by tensions between Washington and Beijing, Hutchison said in a statement that the exclusive negotiations period with the consortium has expired. However, it added 'the Group remains in discussions with members of the consortium with a view to inviting major strategic investor from the PRC to join as a significant member of the consortium,' referring to the People's Republic of China. It said they needed to change the membership of the consortium and the structure of the transaction for the deal to be able to pass reviews by 'all relevant authorities." The awkward position Hutchison found itself in for months highlights the challenges Hong Kong business elites face in navigating Beijing's expectations of national loyalty, especially when relations between China and the United States are strained. Hong Kong has overhauled its electoral system to ensure the city is run by 'patriots.' CK Hutchison is owned by the family of Hong Kong's richest man, Li Ka-shing. It announced March 4 that it would sell all its shares in Hutchison Port Holdings and in Hutchison Port Group Holdings to the consortium that also includes BlackRock subsidiary Global Infrastructure Partners and Terminal Investment Limited, a subsidiary of the Mediterranean Shipping Company. In May, Hutchinson co-managing director, Dominic Lai told shareholders that Terminal Investment was the main investor. Its parent company is led by Italian shipping scion Diego Aponte, whose family reportedly has a longstanding relationship with Li's. The initial deal, valued at nearly $23 billion including $5 billion in debt, would have given the consortium control over 43 ports in 23 countries, including the ports of Balboa and Cristobal, located at either end of the canal. That agreement also required approval from Panama's government.
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Business Standard
2 days ago
- Business
- Business Standard
Hong Kong's CK Hutchison seeks Chinese investor to join Panama Ports deal
A Hong Kong conglomerate that's selling ports at the Panama Canal said Monday it may seek a Chinese investor to join a consortium of buyers, a move that could please Beijing but bring more US scrutiny to the geopolitically fraught deal. CK Hutchison Holdings' initial plan to sell its port assets to a group that includes US investment firm BlackRock Inc. pleased President Donald Trump, who has alleged that China interferes with the critical shipping lane's operations in Panama. However, they apparently angered Beijing and drew a review from Chinese anti-monopoly authorities. A Beijing-backed newspaper posted scathing commentaries about the deal, with one describing it as a betrayal of all Chinese. Beijing's offices overseeing Hong Kong affairs have reposted some of these commentaries, widely seen as an indication of Chinese leaders' stance. A Hutchison subsidiary has operated ports at both ends of the Panama Canal since 1997. After months of uncertainty brought by tensions between Washington and Beijing, Hutchison said in a statement that the exclusive negotiations period with the consortium has expired. However, it added the Group remains in discussions with members of the consortium with a view to inviting major strategic investor from the PRC to join as a significant member of the consortium, referring to the People's Republic of China. It said they needed to change the membership of the consortium and the structure of the transaction for the deal to be able to pass reviews by all relevant authorities." The awkward position Hutchison found itself in for months highlights the challenges Hong Kong business elites face in navigating Beijing's expectations of national loyalty, especially when relations between China and the United States are strained. Hong Kong has overhauled its electoral system to ensure the city is run by patriots. CK Hutchison is owned by the family of Hong Kong's richest man, Li Ka-shing. It announced March 4 that it would sell all its shares in Hutchison Port Holdings and in Hutchison Port Group Holdings to the consortium that also includes BlackRock subsidiary Global Infrastructure Partners and Terminal Investment Limited, a subsidiary of the Mediterranean Shipping Company. In May, Hutchinson co-managing director, Dominic Lai told shareholders that Terminal Investment was the main investor. Its parent company is led by Italian shipping scion Diego Aponte, whose family reportedly has a longstanding relationship with Li's. The initial deal, valued at nearly $23 billion including $5 billion in debt, would have given the consortium control over 43 ports in 23 countries, including the ports of Balboa and Cristobal, located at either end of the canal. That agreement also required approval from Panama's government. The deadline for their exclusive negotiation period ended on July 27.
Yahoo
08-07-2025
- Business
- Yahoo
BLK Acquires HPS Investment: Is it Riding on Private Credit Growth?
BlackRock Inc. BLK has announced the completion of the acquisition of HPS Investment Partners (HPS). The move signals the company's deeper foray into the private credit market, which is rapidly emerging as one of the most lucrative sectors in global credit is reshaping financial markets, accelerating the convergence of public and private markets. Capital markets are becoming the main avenue for financing, enabling asset managers to align long-term capital with investors like insurers, pension funds, sovereign wealth funds and capitalize on these opportunities, BlackRock is launching Private Financing Solutions (PFS), a platform that integrates its leading private credit, GP, and LP solutions, and both private and liquid CLO December 2024, at the time of agreement, it was projected that the buyout would increase BlackRock's private markets fee-paying assets under management (AUM) and management fees by 40% and 35%, respectively. Additionally, the deal is expected to be modestly accretive to BlackRock's adjusted earnings per share in the first year following the close. Further, it was estimated that in 2025, HPS is expected to add approximately $850 million of the base fee and nearly $360 million of post-tax Fee-related earnings (FRE) at a 50% line with its efforts to enhance private credit capabilities, during its Investor Day conference last month, BLK announced plans to expand into private markets. It is targeting $400 billion in private markets fundraising by 2030. Further, in March 2025, BlackRock purchased Preqin, a premier independent provider of private markets data to enhance its private markets offerings. In October 2024, it acquired Global Infrastructure Partners to enhance its infrastructure offerings and origination capabilities. These buyouts reflect a strategic expansion of the company's Aladdin technology business into the rapidly growing private markets data segment. Product Diversification to Boost AUM: BlackRock has been focusing on diversifying its product suite and revenue mix, which, along with strategic buyouts, has been improving AUM over the years. AUM witnessed a five-year (2019-2024) CAGR of 9.2%. The uptrend continued during the first quarter of 2025. As of March 31, 2025, BlackRock's total AUM was a record $11.58 trillion, with net inflows of $83 billion. The momentum will likely continue as efforts to strengthen the iShares unit (offering more than 1,400 ETFs globally) and ETF operations and an enhanced focus on the active equity business are likely to offer March, the company launched iShares Bitcoin on Xetra and Euronext Paris under the ticker IB1T and on Euronext Amsterdam under the ticker name BTCN. Last September, the company announced a collaboration with Partners Group to introduce a multi-private markets model solution, boosting retail investors' accessibility to alternative investments. Also, last month, Jio BlackRock, a joint venture between BLK and India-based Jio Financial, received regulatory approval to operate as an investment adviser in product diversification efforts are likely to bolster the company's revenue mix, reduce revenue concentration risk, and allow it to serve a broader range of clients, aiding AUM growth. The company's GAAP revenues witnessed a CAGR of 7% over the last five years ended 2024, with the momentum continuing in the first quarter of the combination of HPS Investment, Preqin and GIP data with BLK's alternative asset management platform, eFront, will drive solid revenue growth in the quarters ahead. Sales Estimates Image Source: Zacks Investment Research Encouraging Capital Distributions: BlackRock has a decent balance sheet. As of March 31, 2025, it had $7.7 billion in cash and cash equivalents while borrowings totaled $12.3 billion. This indicates a decent liquidity position. BlackRock announced a 2% hike in the quarterly dividend to $5.21 per share in January 2025. BLK has increased its dividend five times in the last five years with an annualized dividend growth rate of 8.15%.Also, the company has a 46% dividend payout ratio, while its peers, SEI Investments and Invesco, have 21% and 45% payout ratios, respectively. Dividend Yield Image Source: Zacks Investment Research Also, BlackRock has a share repurchase plan in place. In the first quarter of 2025, the company repurchased $375 worth of shares. It aims to buy back shares worth $1.5 billion this year. Over the past month, the Zacks Consensus Estimate for 2025 and 2026 earnings per share has been revised marginally upward to $44.92 and $50.71, respectively. Estimate Revision Trend Image Source: Zacks Investment Research The projected figures imply growth of 3% and 12.9% for 2025 and 2026, respectively. (Find the latest EPS estimates and surprises on Zacks Earnings Calendar.) In the past month, BLK shares have risen 7.3%, outperforming the S&P 500 index, the Zacks Finance sector and the industry. However, the stock has underperformed its close peers — SEI Investments SEIC and Invesco IVZ. One-Month BLK Price Performance Image Source: Zacks Investment Research In terms of valuation, BLK's price-to-book ratio (P/B) of 3.39X is lower than the industry's 3.73X. Thus, the stock is trading at a discount. This suggests that investors may be paying a lower price relative to the company's expected earnings growth. Price-to-Book Ratio Image Source: Zacks Investment Research Further, BLK is inexpensive compared with SEI Investments' P/B of 5.05X. On the other hand, the company is trading at a premium compared with Invesco, which has a P/B of BlackRock's growth initiatives have helped generate higher returns. This is demonstrated by the company's return on equity (ROE) of 15.57% compared with the industry's ROE of 10.60%. Return on Equity Image Source: Zacks Investment Research However, a steady rise in expenses is a headwind. The company recorded a five-year CAGR of 7.4% (ended 2024), mainly due to higher general and administrative (G&A) costs. The uptrend continued in the first quarter of 2025. Overall costs are expected to remain elevated due to the company's business expansion plans. Further, given rising geopolitical risks, foreign currency fluctuations and the global impact of tariff policies, BlackRock may witness subdued overseas revenues, which will likely weigh on its growth to some BlackRock is well-positioned to capitalize on the acquisitions, including HPS, Preqin and GIP, to expand its presence in the fast-growing private markets. This, alongside record AUM levels and product diversification efforts, is expected to support its financials. Inexpensive valuation and bullish analyst sentiments are other should watch out for the above-mentioned concerns and monitor how BlackRock integrates the acquisitions into its businesses before making any investment decision. Those who already own the stock can continue holding it for BLK carries a Zacks Rank #3 (Hold). You can see the complete list of today's Zacks #1 Rank (Strong Buy) stocks here. Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report BlackRock (BLK) : Free Stock Analysis Report Invesco Ltd. (IVZ) : Free Stock Analysis Report SEI Investments Company (SEIC) : Free Stock Analysis Report This article originally published on Zacks Investment Research ( Zacks Investment Research Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
Yahoo
03-07-2025
- Business
- Yahoo
BlackRock's breakout offering overtakes flagship S&P 500 fund in revenue
BlackRock's breakout offering overtakes flagship S&P 500 fund in revenue originally appeared on TheStreet. Wall Street giant BlackRock, Inc. (NYSE: BLK) is now generating more in revenue from its spot Bitcoin exchange-traded fund (ETF) than its signature S&P 500 fund offering, Bloomberg reported on July 2. BlackRock is the world's largest asset manager that managed $11.5 trillion in assets under management (AUM) as of 2024. It is among the first institutional giants to introduce crypto-linked funds in the traditional markets. The asset manager launched the iShares Bitcoin Trust (IBIT), its spot Bitcoin ETF, in January 2024 once the Securities and Exchange Commission (SEC) greenlit it. IBIT managed more than $75 billion in net assets as of July 2 as per SoSoValue. It is the largest spot BTC fund in the world and accounts for 3.52% of total Bitcoin per the Bloomberg report, IBIT has witnessed an astonishing fund inflow from both institutional and retail investors. Since its launch in January 2024, the fund has seen a positive net flow for all 18 months except one. With an expense ratio of 0.25%, the BTC ETF has generated an estimated $187.2 million in annual fees for BlackRock, as per Bloomberg's calculations as of July 1. In contrast, BlackRock's iShares Core S&P 500 ETF (IVV) generated an estimated annual fees of $187.1 million. Launched in 2000, IVV manages $624 billion in net assets — 8.3 times that of its Bitcoin counterpart. However, its expense ratio is only 0.03% — also 8.3 times lower. Crypto entrepreneur and podcast host Anthony Pompliano underlined on X that Wall Street is paying full attention to Bitcoin. As per Kraken's price feed, Bitcoin was trading at $109,131.76, up 1.7% a day. BlackRock's breakout offering overtakes flagship S&P 500 fund in revenue first appeared on TheStreet on Jul 3, 2025 This story was originally reported by TheStreet on Jul 3, 2025, where it first appeared. Error while retrieving data Sign in to access your portfolio Error while retrieving data Error while retrieving data Error while retrieving data Error while retrieving data
Zawya
03-07-2025
- Business
- Zawya
BlackRock mulls selling stake in Saudi Aramco gas pipelines, Bloomberg News reports
Asset manager BlackRock Inc is in talks with Saudi Aramco to divest its stake in the leasing rights of a natural gas pipeline network back to the state oil major, Bloomberg News reported on Thursday, citing people familiar with the matter. The stake, which BlackRock acquired in 2021, is likely to be worth billions of dollars, according to the report. Reuters could not immediately confirm the report. (Reporting by Shanima A in Bengaluru)
