Russia's mergers and acquisitions market dwindled by 35% in 2012, the total amount of transactions is provisionally estimated at a mere $50 billion compared with $77.4 billion in 2011. The total amount of 30 largest deals effected in 2012 decreased even stronger, by 42.7% to $30.04 billion from $52.44 billion the year before, according to the ranking list of 30 largest 2012 M&A events in the Russian market prepared by AK&M Information Agency.
Actual transactions have lost weight, too. The largest 2011 transaction, the merger of Uralkali and Silvinit, involved $8.8 billion. The largest asset acquired in 2012 (Denizbank, Turkey) cost the buyer, Sberbank of Russia, only $3.8 billion. The lowest transaction value on the Greatest 30 list also decreased from $500 million in 2011 to $360 million in 2012.
"The principal reason for this downward trend is the political and financial instability in the domestic and global M&A markets," Yaroslava Zabello, Head of the Analysis Center, AK&M Information Agency, points out. "Of particular note is that Russian companies are cutting expenses in the domestic market most.
While the ranking contained 21 domestic transactions (70% of the total number), the number of such deals dropped to 18 (60%) in 2012. Their total amount decreased more than twice year-on-year to $16.88 billion against $37.86 billion the year before.
AK&M "M&A Market"
"AK&M", 27.12.2012 12:18
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