Canadian Pacific Kansas City announced on Wednesday that it, along with U.S.-based Lanco Group, has sold the Panama Canal Railway Company to a unit of Denmark’s Maersk, a leading container shipping group.

The terms of the deal were not disclosed, but Canadian Pacific stated that the sale will allow the company to refocus on its core assets in Canada, the U.S., and Mexico.

Keith Svendsen, CEO of Maersk’s unit APM Terminals, commented, “The acquisition represents an attractive infrastructure investment in the region aligned with our core services of intermodal container movement.”

Originally established as a joint venture between Canadian Pacific and Lanco Group, the Panama Railway Company offers rail-based freight and passenger services along the canal, generating a revenue of $77 million last year.

This acquisition comes amidst the backdrop of U.S. President Donald Trump’s administration threatening to take control of the canal due to concerns over foreign presence, particularly from China.

Recent developments, such as Hong Kong’s CK Hutchison agreeing to sell key ports near the Panama Canal to a group led by BlackRock, have somewhat alleviated the pressure. However, delays in finalizing the deal have emerged following China’s objections.

(Source: Reuters)