China’s retail industry saw a drop of 8.8 pc in overall deal activity during Q4 2019, when compared with the last four-quarter average, according to GlobalData’s deals database.
A total of 31 deals worth US$ 3.21bn were announced in Q4 2019, compared to the last four-quarter average of 34 deals.
Venture financing was the leading category in the quarter with 20 deals which accounted for 64.5 percent of all deals.
In second place was M&A with six deals, followed by private equity with five transactions, respectively accounting for 19.4 percent and 16.1 percent 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 US$ 2.67bn, while private equity and venture financing deals totalled US$ 475.83m and US$ 67.04m, respectively.
China retail industry deals in Q4 2019: Top deals
The top five retail deals accounted for 90.7 percent of the overall value during Q4 2019.
The combined value of the top five retail deals stood at US$ 2.91bn, against the overall value of US$ 3.21bn recorded for the month.
The top five retail industry deals of Q4 2019 tracked by GlobalData were:
– Wumart Stores’ $2.1bn asset transaction with Metro
– The $471.06m acquisition of Springland International by Octopus (China)
– Co-Stone Capital Investment, GenBridge Capital, Jiangu Capital, Lighthouse Capital, Shanghai Zhenghan Investment Management and Taikang Life Insurance’s US$ 142.92 m venture financing of Qiandama
– The US$ 100m venture financing of Club Factory by Bertelsmann Asia Investments, Frees Fund and Qiming Venture Partners
– Anchor Equity Partners and Hillhouse Capital Group’s venture financing of Hangzhou Yangtuo Network Technology for US$ 100m.