Baosteel Group Corp, China's largest steel mill, acquired an 8-percent stake in Zhanjiang Port Group Co, the South China Morning Post said, citing China Merchants Holdings (International) Co Chairman Fu Yuning.

China Merchants' stake in the port operator fell to 40 percent following the deal, the Hong Kong-based newspaper said. Zhanjiang Port Authority holds the remainder, it added.

The partners will invest 4 billion yuan (US$586 million) in expanding the port, the report said. The port boosted first-half traffic 35 percent, it added.

(Shanghai Daily July 15, 2008)