Huaran News
China-outbound M&A Transactions Analysis (automation, industrial robot)
Published:2015-03-06 Source:
The growth trend of China macro-economic remains at relatively moderate speed. According to the official data, the GDP growth rate of 2014 is 7.4% .
Traditional China manufacturing enterprises are experiencing an industrial revolution that aims to
- Create higher production value
- Encourage more innovation
- Acquire the core technology improvement
- Upgrade relevant machinery and equipment
- Evolve from OEM to ODM
- Develop their own brand and good will
Most local industrial robotics manufacturers are involved in the production of Main Body and system integration, some outstanding firms perform well in the R&D of controller and servo motor.
The most substantial costs of producing an robot for Chinese firms: Reducing gear (imported from Japan, R&D fees etc)
Conclusion:
- Lacking the key technology of robot core parts
- Relying on imported core parts
- Low Added -Value (integration and body parts)
Outbound M&A transactions mainly focus on Energy, Manufacturing, IT and Internet. The sum of the investment in these 4 industries occupy more than half of the total outbound M&A transaction value.
Germany becomes the first choice for Chinese investment in Europe.
Chinese enterprises had closed 36 M&A transactions.