1. Deals Analysis
November 13, 2019

China’s consumer industry sees a rise of 33.3% in deal activity in Q3 2019

China’s consumer industry saw a rise of 33.3% in overall deal activity during Q3 2019, when compared with the last four-quarter average, according to GlobalData’s deals database.

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A total of 140 deals worth $4.33bn were announced in Q3 2019, compared to the last four-quarter average of 105 deals.

Venture financing was the leading category in the quarter with 108 deals which accounted for 77.1% of all deals.

In second place was M&A with 25 deals, followed by private equity with seven transactions, respectively accounting for 17.9% and 5% 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 $2.1bn, while private equity and venture financing deals totalled $1.42bn and $815.03m, respectively.

China consumer industry deals in Q3 2019: Top deals

The top five consumer deals accounted for 38% of the overall value during Q3 2019.

The combined value of the top five consumer deals stood at $1.65bn, against the overall value of $4.33bn recorded for the month.

The top five consumer industry deals of Q3 2019 tracked by GlobalData were:

1) Shijiazhuang Junqian Enterprises Management and Shijiazhuang Penghai Venture Capital Fund’s $585.36m private equity deal with Shijiazhuang Junlebao Dairy

2) The $300m venture financing of Chengjia Apartment by Boyu Capital Consultancy, CCB International (Holdings), Huazhu Hotels Group and Yunfeng Capital

3) 58.com and Tencent Holdings’ $300m venture financing of Zhuan Zhuan

4) The $260.1m acquisition of Qinghuangdao Maoye Department Store by Maoye Commercial (formerly Chengshang Group)

5) KKR’s venture financing of Furong Xingsheng for $200m.

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.