1. Deals Analysis
August 4, 2020

China’s consumer industry sees a rise of 3.2% in deal activity in Q2 2020

China’s consumer industry saw a rise of 3.2% in overall deal activity during Q2 2020, when compared with the last four-quarter average, according to GlobalData’s deals database.

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A total of 128 deals worth $4.69bn were announced in Q2 2020, compared to the last four-quarter average of 124 deals.

Venture financing was the leading category in the quarter with 70 deals which accounted for 54.7% of all deals.

In second place was M&A with 53 deals, followed by private equity with five transactions, respectively accounting for 41.4% and 3.9% of overall deal activity in the country’s consumer industry during the quarter.

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In terms of value of deals, M&A was the leading deal category in China’s consumer industry with total deals worth $2.66bn, while private equity and venture financing deals totalled $1.96bn and $79.2m, respectively.

China consumer industry deals in Q2 2020: Top deals

The top five consumer deals accounted for 31.8% of the overall value during Q2 2020.

The combined value of the top five consumer deals stood at $1.49bn, against the overall value of $4.69bn recorded for the month.

The top five consumer industry deals of Q2 2020 tracked by GlobalData were:

1) Tencent Holdings’ $365m acquisition of Yixin Group

2) The $290.96m acquisition of Hainan Duty Free by China Duty Free Group

3) Shanghai Zhengjiu Industrial’s $290.7m asset transaction with GuocoLand (China)

4) The $280m venture financing of Chehaoduo Old Motor Vehicle Brokers (Beijing) by SC Auto and SVF CAR SUBCO (SINGAPORE)

5) Shanghai Yuyuan Tourist Mart’s acquisition of Jinhui Liquor for $265.91m.

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.