(Yicai Global) Feb. 27 -- A unit of state-owned conglomerate China Merchants Group has completed its HKD7.2 billion (USD924.2 million) acquisition of Brazil's second largest port Paranagua representing the biggest port deal seen in Latin American.

Hong Kong-based China Merchants Port Holdings Co. has taken a 90 percent stake in the port through its first investment in the South American market, the company said in a statement.

"The investment in Brazil will definitely inject new momentum to both countries in terms of economy and trade. We believe under the support and coordination between China and Brazil, Parangua will have a brighter future," said Chinese ambassador to Brazil Li Jinzhang at a ceremony to mark the deal's completion.

Located on the southeastern coast of Brazil, Paranagua is the second largest container terminal in the country after Port Santos with existing capacity of 1.5 million twenty-foot equivalent units, which will increase to 2.4 million TEUs after an expansion project is completed next year.

China was not only the number one destination for Brazilian exports of goods last year, but also the largest source of its imports, CMP vice chairman Hu Jianhua said, adding that in the future, the company will continue to promote the economic and trade cooperation between BRICS countries with the Paranagua as the starting point, especially in terms of logistics, transportation infrastructure and park development in Brazil.

China Merchants Group holds equity interests in 52 ports spanning 20 countries, including the Port of Djibouti, Hambantota Port in Sri Lanka and the Port of Newcastle in Australia.