China's domestic M&A hits record high

China's domestic M&A with PE involvement exceeded $6 billion in deal value during the first half of the year, led by the consumer staples sector.

China's private equity-backed M&A recorded a record high in the first half of the year, led by the acquisition of companies in the consumer staples sector, according to data from Thomson Reuters.

Domestic M&A with private equity involvement hit $6.16 billion across 54 deals in the first half to June 20, compared to $4.79 billion across 74 deals during the same period in 2012.

The first half deal value was the highest ever for that time period, according to the data.

The value of consumer staples acquisitions grew more than 10x to $3.7 billion across five deals compared to $332 million across eight deals during the same period in 2012.

The data also noted a huge drop in domestic financial sector acquisitions. In the first half they accounted for $114 million across three deals. During the same period last year, domestic financial sector M&A reached $2.38 billion across nine deals.

China’s top sectors for PE-backed M&A in 2013

Sector  Value  (US$M)  Deals
 Consumer staples  $3.655  5
 High tech  $1.038  10
 Real estate  $499  4
 Energy & power  $315  4
Media/entertainment  $281  5

 Source: Thomson Reuters

Top domestic PE-backed M&A deals Jan-Jun 2013

Target  Value  (US$M)    PE firm acquirer
 GD Midea Holding  $2.980  Foshan Shunde Midea Invest

China Huiyuan  $660  Warburg Pincus

 AsiaInfo-Linkage  $545  Qatar Holding,  CITIC Capital Partners, Temasek

 Pactera Tech  $463  Blackstone

Shanghai Chengtou  $289  Hony Capital

 Source: Thomson Reuters