AK&M has released the results of the M&A market with Russian assets for May

AK&M 04 July 2022 14:31

In May 2022, the M&A market with a threshold of $1 million increased markedly against the result of last year. The total value of transactions increased 1.6 times compared to May 2021, amounting to $7.83 billion against $4.84 billion a year earlier. This is stated in the bulletin "Mergers and Acquisitions Market " of AK&M News Agency (issue N 291)

At the same time, the number of transactions also increased, albeit less significantly: 49 transactions took place in May 2022, and 43 a year earlier (+14%). In ruble terms, the amount of transactions of the reporting period increased slightly weaker - by 1.4 times to 224.29 billion rubles from 164.38 billion rubles in May last year.

At the same time, the value of the assets sold has also increased. The average transaction value (excluding the largest) increased by 38.8% to $75.6 million from $54.5 million in May 2021.

Two deals worth over $1 billion were concluded in a month, and both were forced, related to the withdrawal of companies from sanctions against Russia. The largest transaction of the reporting period was recorded in sports - businessman Roman Abramovich, who fell under Western sanctions, completed the sale of his Chelsea football club to a consortium of investors led by Todd Boeli and his company Clearlake Capital for $3.15 billion.

The second largest deal was in mechanical engineering - the French Renault group withdrew from its Russian automotive assets, selling a 67.61% stake in AvtoVAZ and 100% of the Renault Russia plant for an estimated $1.13 billion.

In May, many foreign companies acted as sellers, selling assets on the territory of Russia to Russian buyers (according to our assessment methodology, such transactions are classified as internal). In particular, foreigners from unfriendly countries sold 17 assets out of 49 in May, while both Russians and other foreign investors (for example, from Turkey or India) became buyers.

In addition, the sale of foreign assets of Russian investors continued - the share of such transactions in the total volume of the month was 42.2%. A similar trend is expected in the future - now other sales of foreign investors are planned, related to the sanctions pressure on Russian business, especially in the financial sector.

In May, assets in construction and development continued to play a significant role – 38.5% of the total number of transactions took place in this industry, although the volume of transactions here is gradually decreasing. Moreover, analysts believe that the demand for construction assets will not decrease in the near future. In times of crisis, real estate remains one of the most reliable ways to save money. Analysts expect continued consolidation of assets in the industry, although their value is likely to fall.

Read more about the results of the M&A market for May 2022 in issue No. 291 of the monthly bulletin "Mergers and Acquisitions Market" of the AK&M News Agency.


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