China Machinery Group successfully acquires a 29.91% stake in Chongqing Chuanwei Automation Co., Ltd. for approximately 3.716 billion yuan, aiming to enhance its capabilities in the domestic industrial automation sector.

Target Company Overview

Chongqing Chuanwei Automation Co., Ltd. (hereafter referred to as 'Chuanwei'), with the stock code 603100.SH, has become a pivotal entity in the industrial measurement and control sector since its establishment in 1999. The company went public in 2014 on the Shanghai Stock Exchange and was previously controlled by the Chongqing State-owned Assets Supervision and Administration Commission. Chuanwei is recognized as one of the key state-designated industrial instrument bases in the nation, seeking to provide comprehensive solutions in industrial automation and control systems. With the largest scale and the most diverse product range in its sector, Chuanwei aims to enhance integration capabilities in its offerings.

This acquisition positions Chuanwei under the management of China Machinery Group Co., Ltd. (referred to as 'China Machinery Group'), a major player directly governed by the central government that emphasizes high-end equipment manufacturing and extensive service offerings. The purchase represents a significant shift in ownership that underscores China's strategic initiative to bolster domestic capabilities in critical technological instruments.

Industry Overview in China

The industrial instruments and automation sector in China has witnessed substantial growth, driven by domestic innovation and a push towards modernization. The industry's expansion aligns with the country's broader objectives of enhancing manufacturi