Deal expected to strengthen capabilities in international market while helping gain access in Poland, Switzerland, Angola and Mozambique

Chinese conglomerate Fosun International has acquired 16.7 percent of Millennium BCP, becoming the largest shareholder in Portugal's largest listed lender by assets and further extending the group's business in Europe and Africa.

The deal is the latest move by Fosun after its acquisition of a slew of high-profile overseas assets, including French resort operator Club Med, Portugal's largest insurer Fidelidade and Canada's circus and entertainment giant Cirque du Soleil.

Fosun, one of China's most acquisitive groups, is owned by tycoon Guo Guangchang.

Millennium BCP said in a statement on Nov 20 that Portuguese regulators had approved the offer by Fosun to acquire its stake for 175 million euros ($185.5 million; 149.6 million).

Fosun said in a filing with the Hong Kong Stock Exchange that the deal will help it extend its business in Europe and Africa. It also confirmed the plan to increase its stake to 30 percent in the near future.

The deal will strengthen Fosun's financial capability in international commercial banking, investment banking and private banking sectors and will help it gain access to financial markets in Poland, Mozambique, Angola and Switzerland, the company said in the filing.

The transaction was made through a private placement of Millennium's new shares to Fosun at a price 1.1089 euros per share, an 11 percent discount on Nov 18 closing price.

The share dilution made Fosun the biggest shareholder in the Portuguese lender, surpassing Angolan state oil company Sonangol, which owned a 17.84 percent stake before Fosun's acquisition.

Fosun's investment is expected to boost the capital position and improve the profitability of Millennium as the Portuguese financial sector has undergone a major transformation since the global financial crisis began in 2008, and financial institutions have been under pressure to spin off debts and bad loans.

The deal also highlighted the ongoing interest of cash-rich Chinese companies in European assets, industry analysts said.

Europe remains the most attractive region for Chinese buyers with activity totaling $73.8 billion in 120 deals in the first three quarters of this year - a 138.8 percent jump over the same period in 2015, merger data provider Mergermarket said in a report.

But the trend could slow in the fourth quarter as the Chinese authorities are concerned about capital outflow through fake trade deals, the report said.

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