The deal, the biggest Chinese investment in a European club, follows retail giant Suning Commerce Group's purchase of rivals Inter last year. A Chinese firm also underwrites the media rights to the top league, Serie A.
In a joint statement, Berlusconi's holding Fininvest said it had sold its entire 99.93 per cent stake in the club to Luxembourg-based Rossoneri Sport Investment Lux, a company controlled by investor Yonghong Li which replaced the original Chinese bid vehicle.
The 740-million euro price tag includes 220 million euros in debt. The buyers, who paid a final tranche of 370 million euros on Thursday, committed to a significant recapitalisation and financial strengthening of the club, the statement said.
Berlusconi, 80, is selling after three decades in control of the former European champions because he was unwilling to stump up the extra money required for the team to compete with the continent's top clubs, many now bankrolled by wealthy Gulf and Asian owners.
He had agreed the deal to sell AC Milan last August, but the transaction ran into trouble and took longer than expected to complete as Beijing cracked down on non-strategic foreign acquisitions, especially vanity deals in the sports industry.
US private equity fund Elliott came to the deal's rescue at the 11th hour last month, agreeing to lend money to Rossoneri Sport Investment.
The vehicle received 180 million euros from Elliott and another 140 million euros from China's Huarong, said a source familiar with the transactions.
A further 50 million were paid by Yonghong Li, the source added.
Read the full article on eurosport.co.uk: Berlusconi finalises sale of Italy's AC Milan to Chinese group