China’s retail industry sees a drop of 28.6% in deal activity in Q3 2020

4 November 2020 (Last Updated November 4th, 2020 16:54)

China’s retail industry sees a drop of 28.6% in deal activity in Q3 2020

China’s retail industry saw a drop of 28.6% in overall deal activity during Q3 2020, when compared with the last four-quarter average, according to GlobalData’s deals database.

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A total of 25 deals worth $1.07bn were announced in Q3 2020, compared to the last four-quarter average of 35 deals.

Venture financing was the leading category in the quarter with 14 deals which accounted for 56% of all deals.

In second place was M&A with ten deals, followed by private equity with one transactions, respectively accounting for 40% and 4% 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 $962.13m, while private equity and venture financing deals totalled $95.2m and $12.14m, respectively.

China retail industry deals in Q3 2020: Top deals

The top five retail deals accounted for 96.4% of the overall value during Q3 2020.

The combined value of the top five retail deals stood at $1.03bn, against the overall value of $1.07bn recorded for the month.

The top five retail industry deals of Q3 2020 tracked by GlobalData were:

1) Abu Dhabi Capital Group, CICC Capital ManagementLimited, Goldman Sachs & Co, ICBC International Capital, Suzhou Changshu Government Industry Fund, Tencent Holdings and Tiger Global Management’s $495m venture financing of Beijing Missfresh E-Commerce

2) The $358.28m venture financing of Yipin Fresh by Capital Today, Eastern Bell Capital and Tencent Holdings

3) Xiamen ITG Holding Group’s $85.42m acquisition of China ZhengTong Auto Services

4) The $80m venture financing of Shihui Group by CDH Investments Fund Management, CMBC International, GGV Jiyuan Capital and INCE Capital

5) Guangzhou Baijie Investment Partnership, Guangzhou Maimeng Investment Partnership Enterprise and Lan Junjie’s private equity deal with Guangzhou Maiyou Network Technology for $12.14m.

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.