The total amount of the M&A transactions in the electric power sector increased almost 6 times in 2013 to $3,778.1 million against $638.6 million in 2012, according to the latest issue of AK&M Information Agency's bulletin RUSSIAN INDUSTRIES: PRODUCTION, FINANCE, SECURITIES addressing the electric power sector.
This growth was almost entirely driven by the largest transaction of the year in the sector, the acquisition of Moscow Integrated Power Company (MIPC) by Gazprom energoholding LLC at an auction. The deal value was about $2.97 billion.
Without this transaction, the M&A market volume in the electric power sector in 2013 increased by 27% year-on-year. The number of transactions edged up to 17 from 16.
The relatively small number of transactions is directly attributable to the changed regulatory framework, in particular, the freezing of tariffs starting 2014, and lower financial performance of power companies.
More information is provided in the latest issue of the bulletin RUSSIAN INDUSTRIES: PRODUCTION, FINANCE, SECURITIES no. 1059.