Deals in China’s retail and consumer sector: 2019 review and 2020 outlook - Reigniting M&A as consumption returns

April 2020

2019 was a solid year for M&A - though deal volume and disclosed transaction value were lower than 2018 by 5% and 15%, respectively, there were more mega deals and the average size of disclosed transactions increased. Domestic deals by corporate investors in traditional retail, and outbound deals in food and beverage, as well as hotel, dining and leisure, all saw higher disclosed transaction values.

Q1 2020 marked an abrupt downturn: a roughly 70% decline in disclosed deal value and volume compared to the same period in 2019. Nonetheless, there have still been some significant deals, demonstrating confidence in the retail and consumer sector on the part of some investors.

Looking forward, we remain optimism about the medium-to-long-term prospects for deals in China‘s retail and consumer sector. We expect the deals to rebound in 2020 after COVID-19 starts to come under control. Deals will revolve around the themes of "new retail", "pursuit of health & wellness products" and "consolidation / supply chain optimization".

Contact us

Michael Cheng

Asia Pacific, Hong Kong and Mainland China Consumer Markets Leader, PwC China

Tel: +[852] 2289 1033

Jennifer Ye

Mainland China Consumer Markets Leader, PwC China

Tel: +[86] (21) 2323 3325

Waldemar Jap

Consumer Markets Deals Lead Partner, PwC Hong Kong

Tel: +[852] 2289 1892

Ken Zhang

Advisory Partner, PwC China

Tel: +[86] (21) 2323 3120

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