China’s retail industry sees a drop of 34.3% in deal activity in Q1 2020

27 April 2020 (Last Updated April 27th, 2020 12:53)

China’s retail industry sees a drop of 34.3% in deal activity in Q1 2020

China’s retail industry saw a drop of 34.3% 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 23 deals worth $3.02bn were announced in Q1 2020, compared to the last four-quarter average of 35 deals.

M&A was the leading category in the quarter with 11 deals which accounted for 47.8% of all deals.

In second place was venture financing with ten deals, followed by private equity with two transactions, respectively accounting for 43.5% and 8.7% of overall deal activity in the country’s retail industry during the quarter.

In terms of value of deals, M&A was the leading deal category in China’s retail industry with total deals worth $2.73bn, while private equity and venture financing deals totalled $191.35m and $105.42m, respectively.

China retail industry deals in Q1 2020: Top deals

The top five retail deals accounted for 86.6% of the overall value during Q1 2020.

The combined value of the top five retail deals stood at $2.62bn, against the overall value of $3.02bn recorded for the month.

The top five retail 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) 58.com’s asset transaction with Uxin for $105m.

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.