China’s power industry sees a rise of 60% in deal activity in Q2 2019

16 July 2019 (Last Updated July 16th, 2019 15:11)

China’s power industry sees a rise of 60% in deal activity in Q2 2019

China’s power industry saw a rise of 60% in overall deal activity during Q2 2019, when compared with the last four-quarter average, according to GlobalData’s deals database.

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A total of 24 deals worth $1.15bn were announced in Q2 2019, compared to the last four-quarter average of 15 deals.

M&A was the leading category in the quarter with 19 deals which accounted for 79.2% of all deals.

In second place was venture financing with three deals, followed by private equity with two transactions, respectively accounting for 12.5% and 8.3% of overall deal activity in the country’s power industry during the quarter.

In terms of value of deals, M&A was the leading deal category in China’s power industry with total deals worth $902.12m, while private equity and venture financing deals totalled $248.7m and $1.45m, respectively.

China power industry deals in Q2 2019: Top deals

The top five power deals accounted for 71.3% of the overall value during Q2 2019.

The combined value of the top five power industry deals stood at $821.28m, against the overall value of $1.15bn recorded for the quarter. The top announced China power industry deal tracked by GlobalData in Q2 2019 was Shanghai Rongyao New Energy’s $251.99m asset transaction with Suzhou GCL New Energy InvestmentLimited.

In second place was the $236.5m stake acquisition of China Jinjiang Environment HoldingLtd by Zhejiang Energy International and Zheneng Capital Holdings and in third place was Guangzhou Boxin Fund Management, Haitong Innovation Securities Investment, Haitong New Energy Equity Investment Management, National Electricity Investment Industry Fund, PCCW Capital and Yingke Innovation Asset Management’s $136.93m private equity deal with Suzhou Phylion Battery.

The $134.46m acquisition of Dezhou Runjin New Energy by Guokai New Energy Technology and Guotou Electric Holding’s asset transaction with Kong Sun Yongtai Investment Holdings for $61.4m held fourth and fifth positions, respectively.

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.