On Friday, China Merchants Holdings signed a whopping $911 Million joint venture agreement to fuse together its port facilities in the area's Qingdao Port with those of its partners in the deal including COSCO Pacific and A. P. Moller Mearsk.

As confirmed by Qingdao Port, the merger would be much beneficial to China's second largest trade port in a time when the worldwide sector is in the process of restructuring in light of the recent global financial downturn.

As per terms of the agreement, China Merchants and Qingdao New Qianwan Container Terminal would each hold a 50% stake in the venture, and investors will include Qingdao Port Group, Mearsk's APM Terminals, DP World, COSCO Pacific, and Pan Asia Shipping. All the details have been confirmed by Qingdao Port in its official statement released right after the JV was signed.

The deal "represents an important step for the group to seek value-enhancement out of the Bohai Rim area while ensuring a harmonious operating environment", said China Merchants.

Both the companies involved will contribute 300 Million Yuan ($43.94) each upfront in cash, and 700 Million Yuan worth of assets towards the Qingdao Qianwan United Container Terminal Co Ltd. The funds and assets will act as registered capital.