China’s retail industry saw a rise of 40.6% in overall deal activity during Q2 2019, when compared with the last four-quarter average, according to GlobalData’s deals database.
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A total of 45 deals worth $2.6bn were announced in Q2 2019, compared to the last four-quarter average of 32 deals.
Venture financing was the leading category in the quarter with 31 deals which accounted for 68.9% of all deals.
In second place was M&A with 13 deals, followed by private equity with one transaction, respectively accounting for 28.9% and 2.2% 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 $1.92bn, while private equity deals totalled $673.12m.
China retail industry deals in Q2 2019: Top deals
The top five retail deals accounted for 82.5% of the overall value during Q2 2019.
The combined value of the top five retail industry deals stood at $2.14bn, against the overall value of $2.6bn recorded for the quarter. The top announced China retail industry deal tracked by GlobalData in Q2 2019 was Suning.com’s $1.16bn acquisition of Carrefour China.
In second place was the $506.55m acquisition of Rundong Automobile Group, Xuzhou Rundong Automobile Sales ManagementLimited, Xuzhou Rundong Jiaoguang Automobile Sales and ServicesLimited and Xuzhou Yuemei Automobile Sales ManagementLimited by Kunming Yanheng Automobile Sales ServicesLimited and in third place was JD.com’s $189.23m stake acquisition of Jiangsu Five Star Appliance.
The $160m venture financing of Qingdao Zhenkun Trading by Eastern Bell Venture Capital, Genesis Capital China, Legend Capital, Matrix Partners China and Tencent Holdings and Capital Today, Gaorong Capital, Hillhouse Capital Group, IDG Capital, Sequoia Capital China, Sinovation Ventures and Xiang He Capital’s venture financing of Hangzhou Beiyou Technology for $126m held fourth and fifth positions, respectively.
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.