Russian and foreign investors rush to buy up asse... | KPMG | RU

Russian and foreign investors rush to buy up assets to expand onto new markets

Russian and foreign investors rush to buy up asse...

KPMG and BFM.ru have prepared a ranking of the largest mergers & acquisitions deals in the third quarter of 2011.

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M&A Group of KPMG in Russia and the CIS and the website BFM have prepared their second joint ranking of mergers & acquisitions deals for the third quarter of 2011. Deals worth USD 99 million and up were tracked.

According to the data obtained, 11 transactions were carried out on the Russian market, with a total volume of almost USD 4.289 billion. During the same period, another eight deals were made which were not included in the sample; their total turnover was USD 200 million. Thus, a total of 19 transactions were carried out on the Russian market, with an overall volume of USD 4.489 billion.

In the second quarter only 11 M&A deals were carried out on the Russian market, with a total volume of USD 4.92 billion, and another nine were announced, with a forecast value of more than USD 14 billion. Over one quarter the volume of already completed M&A deals contracted by 13%, according to the data. However, this trend remains better than that of the global M&A market, where the volume of deals plunged by 19% in the third quarter.

“The activity on the Russian market of mergers and acquisitions was due to a large number of internal deals and greater activity by Russian companies in international transactions to sell resource-based and larger manufacturing companies,” explains Shawn McCarthy, partner of the M&A and Financing Group of KPMG in Russia and the CIS.

“If the financial crisis begins a second wave, there will be drop in the volume of deals, as happened in 2009. However, the consequences for the market will probably be less serious, since many local companies have taken steps to reduce the share of their borrowed capital and to restructure existing debt. Since Russia offers much more attractive opportunities for growth than the slowly growing developed markets in the medium term foreign companies will continue to buy up Russian assets at the same pace, while leading local companies will continue the process of consolidation on the markets of Russia and the CIS,” Shawn added.

For more details, see here.

© 2017 KPMG Audit LLC, the Mongolian member firm of the KPMG network of independent member firms affiliated with KPMG International Cooperative (“KPMG International”), a Swiss entity.

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