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

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The CNC machine tool industry has experienced a wave of overseas mergers and acquisitions in the past, but with the passage of time, this wave has gradually calmed down. Below I will explain this situation based on data analysis.

CNC Machine Tool Industry

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.

However, this merger spree did not last. According to data released by the China Machine Tool Industry Association, the export value of China's machine tool industry in 2019 was 24.62 billion US dollars, a decrease of 6.1% from 2018. Among them, the export value of CNC machine tools was 8.92 billion US dollars, a year-on-year decrease of 11.5%. This shows that the overseas market scale of Chinese CNC machine tool companies is gradually shrinking.

Merger Spree

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.

In short, there are many reasons why the overseas mergers and acquisitions boom in the CNC machine tool industry has calmed down. Although some companies still expand their markets through overseas mergers and acquisitions, this trend is not as common as it used to be. In the future, with the changes in domestic and foreign markets, whether the overseas mergers and acquisitions boom in the CNC machine tool industry will rise again still needs to be observed and analyzed according to specific conditions.

Emily

Hi, I'm Emily, a passionate storyteller who's dedicated to turning cold facts into warm connections. At FlourishLegend, I'm responsible for content strategy, ensuring our writing brings as much warmth as our products. With my background in writing and years of experience in manufacturing, I craft articles that are both professional and easy to understand. When I'm not writing or editing, you might find me hiking in the mountains or curled up with a book and a warm cup of tea. I believe content is more than information - it's about trust, personality, and a touch of warmth.

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