China’s retail industry sees a drop of 2.7% in deal activity in Q2 2020

24 July 2020 (Last Updated July 24th, 2020 13:39)

China’s retail industry sees a drop of 2.7% in deal activity in Q2 2020

China’s retail industry saw a drop of 2.7% 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 36 deals worth $1.77bn were announced in Q2 2020, compared to the last four-quarter average of 37 deals.

Venture financing was the leading category in the quarter with 20 deals which accounted for 55.6% of all deals.

In second place was M&A with 15 deals, followed by private equity with one transactions, respectively accounting for 41.7% and 2.8% 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 $981.59m, followed by private equity deals totalled $790.02m.

China retail industry deals in Q2 2020: Top deals

The top five retail deals accounted for 77.1% of the overall value during Q2 2020.

The combined value of the top five retail deals stood at $1.37bn, against the overall value of $1.77bn recorded for the month.

The top five retail 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) SC Auto and SVF CAR SUBCO (SINGAPORE)’s $280m venture financing of Chehaoduo Old Motor Vehicle Brokers (Beijing)

4) The $230m venture financing of JD MRO by CITIC Industrial Fund, GGV Capital, Sequoia Capital China Growth Partners Fund I and Yuan Capital

5) Sequoia Capital Operations and SoftBank Vision Fund 1’s venture financing of Chehaoduo Old Motor Vehicle Brokers (Beijing) 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.