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PwC: 2019 Review and outlook of M&A activities in China’s logistics industry
Amid the uncertain economic environment, investors are becoming more prudent and rational in conducting M&A transactions. According to PwC’s recent publication, China M&A 2019 Review and 2020 Outlook, the value of China M&A in 2019 declined to USD 558.7bn, touching the lowest since 2014. Deal size and volume dropped by 14% and 13% from 2018 respectively. However, activity levels of M&A varied among different industries.
Deal size of China’s logistics industry was Rmb 73bn in 2019, down 26% from 2018. However, with industrial and consumption upgrade, logistics industry is becoming increasingly important to boost China's economy and attracting more attention from investors. Activity level of M&A in China’s logistics industry has shown a counter trend growth, with a significant increase of deal volume by 30% to 131 in 2019, comparing to 2018.
Roger Zhang, Logistics Deals Leader of PwC Mainland China & Hong Kong, said that China's logistics industry, with a market scale over Rmb10 trillion, will experience iteration and innovation with the promotion of new environment, new ideas and new technologies. Its industry value will continue to be prominent. Affected by the COVID-19 pandemic, China’s logistic industry is expected to witness an acceleration of centralization, integration and informatization. Investments in the logistics industry will evolve around three keywords: value, industry and technology.
