China Power Industry Sees 109.1% Rise in Deal Activity in Q4 2019

The power industry in China saw a rise of 109.1 percent in overall deal activity during the Q4 of 2019 when compared with the last four-quarter average

The power industry in China saw a rise of 109.1 percent in overall deal activity during the fourth quarter (Q4) of 2019 when compared with the last four-quarter average, according to GlobalData’s deals database. A total of 46 deals worth USD 700.97 million were announced in the three month period, compared to the last four-quarter average of 22 deals.

Mergers and Acquisitions (M&A) was the leading category in the quarter with 36 deals which accounted for 78.3 percent of all deals. In second place was venture financing with ten deals which accounted for 21.7 percent of overall deal activity in the country’s power industry during the quarter.

In terms of the value of deals, M&A was the leading deal category in China’s power industry with total deals worth USD 690.91 million, while private equity deals totalled USD 10.06 million.

The top five power deals accounted for 62.4 percent of the overall value during the fourth quarter of 2019. The combined value of the top five power deals stood at USD 437.15 million, against the overall value of USD 700.97 million recorded for the month.

The top five power industry deals of Q4 2019 tracked by GlobalData were:

• Beiqing Clean Energy InvestmentLimited’s USD 177.74 million asset transaction with Zhongrong International Trust
• The USD 122.7 million acquisition of Dongying Kunyu Energy TechnologyLimited by Dongying Kunyu New Energy TechnologyLimited
• Guotou Electric Holding’s USD 63.23 million asset transaction with Kong Sun Yongtai Investment Holdings
• The USD 38.74 million acquisition of Harbin Electric Machinery by Harbin Electric
• China Nuclear Shandong Energy’s acquisition of Tongdao Century Concord Wind Power for USD 34.73 million.

In February, we had reported that the US power industry saw a drop of 4.1 percent in overall deal activity during December 2019, when compared with the last 12-month average, according to GlobalData’s deals database. A total of 47 deals worth USD 6.65  billion were announced in December 2019, compared to the 12-month average of 49 deals. M&A was the leading category in the month in terms of volume with 31 deals which accounted for 66 percent of all deals.