Why did the Overseas Mergers and Acquisitions Boom in the CNC Machine Tool Industry Gradually Calm Down?

First of all, let's take a look at the overseas mergers and acquisitions of the industry of the custom CNC machining tool . According to incomplete statistics, from 2015 to 2016, there were more than 30 overseas mergers and acquisitions of Chinese machine tool companies. Among them, the largest transaction is the acquisition of the cutting tools and systems division of Swedish machine tool manufacturer Sandvik by Aerospace Seiko Co., Ltd., a subsidiary of CASIC, for US$990 million. These mergers and acquisitions have promoted the internationalization process of China's CNC machine tool industry to a certain extent.

Secondly, the development of the domestic market has also affected the enthusiasm for overseas mergers and acquisitions of CNC machine tool companies. With the continuous development of China's economy, the growth of domestic market demand has begun to slow down. At the same time, due to the impact of external factors, such as trade protectionism and slowing global economic growth, the international market has become more complicated and uncertain. These factors have made some companies that provide precision CNC machining services begin to reflect on the cost-benefit ratio of overseas M&A, and gradually reduce overseas M&A actions.