China M&A trends of Logistics industry: 2022 Review and 2023 Outlook

June 2023

In 2022, China’s logistics M&A market reported 110 deals with a total value of RMB58.4 billion, driven primarily by digital intelligence and industry consolidation. Logistics equipment intelligence continues to lead the market, while automation and intelligence in logistics equipment has emerged as a hot spot.

Deal Value

Deal value in 2022 dropped 74% compared to 2021 to RMB58.4 bn

Deal Volume

Deal volume in 2022 dropped sharply to 110, back to the level of 2019 and 80 fewer than that in 2021.

Average Deal Value

The average deal value (excluding mega deals) in 2022 fell from Rmb700 million in 2021 to about RMB500 m

Mega/Large Deals

There were 16 large deals in 2022, 27 fewer than that in 2021, mainly in the warehousing & storage, port logistics and freight forwarding subsectors.

Deal Round

The proportion of “share acquisition” deals volume and value increased to 35% and 62% respectively.

Hot Subsectors

Intelligent logistics remained popular in 2022. This subsector contributed 50 deals, climbing from 39% of the overall deal volume in 2021 to 45% in 2022.

Major Investors

Financial investors initiated 62 deals, 40% fewer than that in 2021. Industrial investors became the main force, contributing 70% to the total deal value.

Major Regions

The Jiangsu-Zhejiang-Shanghai region, the Greater Bay Area (“GBA”) and Beijing remained the most active regions in China for domestic deals, contributing to about 74% to the deal value and 73% to the deal volume.

"We anticipate that crucial technologies enabling the logistics industry to reduce costs, enhance efficiency, accelerate growth in green development will be fostered, improved, and implemented with sustained support from PE/VC capital. Investors will build momentum and augment end-to-end service capabilities through strategic M&A integration. Overall, the industry will continue to make strides and achieve high-quality development on the back of policy guidance and innovation."

Roger Zhang, Mainland China and Hong Kong Logistics Deals Service Leader