China’s consumer industry sees a drop of 32% in deal activity in Q1 2020

21 April 2020 (Last Updated April 21st, 2020 13:31)

China’s consumer industry sees a drop of 32% in deal activity in Q1 2020

China’s consumer industry saw a drop of 32% in overall deal activity during Q1 2020, when compared with the last four-quarter average, according to GlobalData’s deals database.

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A total of 83 deals worth $3.61bn were announced in Q1 2020, compared to the last four-quarter average of 122 deals.

Venture financing was the leading category in the quarter with 50 deals which accounted for 60.2% of all deals.

In second place was M&A with 28 deals, followed by private equity with five transactions, respectively accounting for 33.7% and 6.02% of overall deal activity in the country’s consumer industry during the quarter.

In terms of value of deals, M&A was the leading deal category in China’s consumer industry with total deals worth $2.85bn, while private equity and venture financing deals totalled $560.04m and $191.35m, respectively.

China consumer industry deals in Q1 2020: Top deals

The top five consumer deals accounted for 74.4% of the overall value during Q1 2020.

The combined value of the top five consumer deals stood at $2.68bn, against the overall value of $3.61bn recorded for the month.

The top five consumer industry deals of Q1 2020 tracked by GlobalData were:

1) LeoChen’s $1.42bn acquisition of Jumei International Holding

2) The $705m acquisition of Hangzhou Haomusi Food by PepsiCo

3) Vertical Ventures’ $200m acquisition of Tongdow E-Commerce Group

4) The $191.35m private equity deal with Liaoning Chengda by Guangdong Investment

5) Sequoia Capital China’s venture financing of Junlebao Dairy for $171m.

Verdict deals analysis methodology

This analysis considers only announced and completed deals from the GlobalData financial deals database and excludes all terminated and rumoured deals. Country and industry are defined according to the headquarters and dominant industry of the target firm. The term ‘acquisition’ refers to both completed deals and those in the bidding stage.

GlobalData tracks real-time data concerning all merger and acquisition, private equity/venture capital and asset transaction activity around the world from thousands of company websites and other reliable sources.

More in-depth reports and analysis on all reported deals are available for subscribers to GlobalData’s deals database.

 

Visit our ‘Retail Deals Dashboard’ for the latest trends in M&A, PE, and VC activity, top deals and advisory league tables in the retail industry.