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Deal activity rises in China’s retail industry

China’s retail industry saw a rise of 33.3 per cent in overall deal activity during the third quarter, when compared with the previous four-quarter average, according to GlobalData’s deals database.

A total of 44 deals worth US$1.4 billion were announced in the three months to September, 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 per cent of all deals.

In second place was mergers and acquisitions (M&A) with 13 deals, followed by private equity with one transaction, respectively accounting for 29.5 per cent and 2.3 per cent of overall deal activity in China’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 $983.61 million, while venture financing and private-equity deals totalled $380.69 million and $40 million, respectively.

The top five retail deals accounted for 66.9 per cent of the overall value during the quarter. Their combined value was $940.1 million, against the overall value of $1.4 billion recorded for the period.

The top five deals tracked by GlobalData were:

  • 58.com and Tencent Holdings’ $300 million venture financing of Zhuan Zhuan. 
  • The $260.1 million acquisition of Qinghuangdao Maoye Department Store by Maoye Commercial (formerly Chengshang Group).
  • KKR’s $200 million venture financing of Furong Xingsheng.
  • The $100 million venture financing of Hangzhou Haoyiku Network Technology by IDG Capital, K2VC, Qiming Venture Partners, Sky9 Capital, Tencent Holdings and Vision Plus Capital.
  • Tencent Holdings’ venture financing of Yijiupi E-Commerce for $80 million.

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