China’s power industry sees a rise of 6.9% in deal activity in Q2 2020

China’s power industry saw a rise of 6.9% in overall deal activity during Q2 2020, when compared with the last four-quarter average, according to GlobalData’s deals database.

A total of 31 deals worth $4.86bn were announced in Q2 2020, compared to the last four-quarter average of 29 deals.

M&A was the leading category in the quarter with 27 deals which accounted for 87.1% of all deals.

In second place was venture financing with three deals, followed by private equity with one transactions, respectively accounting for 9.7% and 3.2% 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 $4.73bn, while private equity and venture financing deals totalled $114.1m and $18.35m, respectively.

China power industry deals in Q2 2020: Top deals

The top five power deals accounted for 92.2% of the overall value during Q2 2020.

The combined value of the top five power deals stood at $4.48bn, against the overall value of $4.86bn recorded for the month.

The top five power industry deals of Q2 2020 tracked by GlobalData were:

1) Volkswagen’s $1.21bn acquisition of Guoxuan High-tech

2) The $1.21bn acquisition of Gotion High-tech by Volkswagen

3) The merger of Fujian Huadian Furui Energy Development and Huadian Fuxin Energy for $1.07bn.

4) The $883.6m acquisition of Taicang GCL Waste Incineration Power Generation by Taicang City Investment Environmental Protection Construction Investment

5) BOC Investment and FAW Industry Fund’s venture financing of Huineng Technology for $100m.

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.

Visit our ‘Power Deals Dashboard’ for the latest trends in M&A, PE, and VC activity, top deals and advisory league tables in the power industry.