1. Deals Analysis
November 13, 2019

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

China’s retail 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 44 deals worth $1.4bn were announced in Q3 2019, compared to the last four-quarter average of 33 deals.

Venture financing was the leading category in the quarter with 30 deals which accounted for 68.2% of all deals.

In second place was M&A with 13 deals, followed by private equity with one transaction, respectively accounting for 29.5% and 2.3% of overall deal activity in the country’s retail industry during the quarter.

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In terms of value of deals, M&A was the leading deal category in China’s retail industry with total deals worth $983.61m, while venture financing and private equity deals totalled $380.69m and $40m, respectively.

China retail industry deals in Q3 2019: Top deals

The top five retail deals accounted for 66.9% of the overall value during Q3 2019.

The combined value of the top five retail deals stood at $940.1m, against the overall value of $1.4bn recorded for the month.

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

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

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

3) KKR’s $200m venture financing of Furong Xingsheng

4) The $100m venture financing of Hangzhou Haoyiku Network Technology by IDG Capital, K2VC, Qiming Venture Partners, Sky9 Capital, Tencent Holdings and Vision Plus Capital

5) Tencent Holdings’ venture financing of Yijiupi E-Commerce for $80m.

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.