The M&A market continued to shrink in the first half of 2024. The total value of transactions in January-June decreased by 12.9% compared to the same period last year, reaching $21.39 billion against $24.55 billion a year earlier. This is stated in the bulletin "Mergers and Acquisitions Market" of the AK&M News Agency (issue No. 316).
During this period, 219 transactions were recorded — 20.9% less than a year earlier (277 transactions). In ruble terms, however, the value of transactions remained virtually unchanged, falling by 0.7% to 1918.81 trillion rubles from 1932 billion rubles.
Transactions worth more than $1 billion in the reporting period were concluded less than last year — three against four. The largest of them took place in information technology (IT) — it became a record in the industry. This is the sale of the Russian part of Yandex to a consortium of investors, which includes the company's management and a number of large businessmen, for $5.29 billion.
The second place was taken by a transaction in the mining sector — Polymetal gold miner sold its Russian assets to Mangazeya Group for $3.69 billion. The second billion—dollar deal with financial institutions was the sale of 100% of the leasing "Transfin-M" to the company's management for an estimated $1172.2 million.
Acquired assets fell slightly in the first half of the year. The average value of transactions, excluding the largest, decreased by 8.4% to $52 million compared to $56.8 million in January-June 2023.
In the first half of 2024, the volume of transactions carried out with Russian assets of foreign investors (where the buyer is a Russian resident) decreased significantly. In January-June 2024, the volume of such transactions amounted to only 8.8% (compared to 20.6% in the first half of 2023).
This is due to two factors. The first is the complication of the exit of a foreign investor by law. In addition, the second factor intervened: foreign assets are now transferred under temporary management without legal expropriation, but with the actual alienation of the former owners from management and use. Thus, any transactions with these assets become impossible.
AK&M analysts expect that this tool will be used much more widely, which will further reduce sales of foreign assets in Russia.
Read more about the results of the M&A market in issue No. 316 of the monthly bulletin "Mergers and Acquisitions Market" of the AK&M News Agency.
All agency bulletins can be purchased at the AK&M Analytical Bulletins and Research Store.
