The total value of transactions in the first half of 2022 increased by 5.6% compared to the same period last year, reaching $18.09 billion against $17.14 billion a year earlier. This is stated in the bulletin "Mergers and Acquisitions Market" of the AK&M News Agency (issue N292).
During this period, 217 transactions were recorded — 26.2% less than in the first half of 2021 (294 transactions). In ruble terms, the amount of transactions increased more noticeably — by 13.5% to 941.22 billion rubles from 829.57 billion rubles a year earlier.
However, transactions worth more than $1 billion in the reporting period were concluded less than last year — two against four. The largest transaction of the first half of 2022 was the May sale by Roman Abramovich of the Chelsea football club to a consortium of British investors led by Todd Boeli for $3.15 billion.
The second place was taken by the exit of the French Renault group from Russian automotive assets. In particular, the 67.61% share of the group in AVTOVAZ was transferred to FSUE NAMI, and the Renault Russia plant was transferred to the government of Moscow. The estimated value of the transaction was $1.13 billion.
The third largest transaction — worth less than $1 billion — was the acquisition of Armadis Firm Ekaterina Mikhailova from Igor Rotenberg, Gazprom's main drilling contractor Gazprom Drilling LLC for $933.6 million.
In general, assets are getting more expensive. The average value of transactions (excluding the largest ones) increased 1.7 times to $64.2 million from $38.5 million in January-June 2021.
The dominant role in January-June continued to be played by assets in construction and development — 41.3% of the total number of transactions took place in this industry. Moreover, we believe that the demand for such assets will not decrease, despite the reduction in transaction volumes.
There are quite a lot of reasons for this, including the transfer of housing construction to project financing, which is gradually displacing weak players from the market. Analysts expect continued consolidation of assets in the construction market, although the cost of purchased enterprises will continue to fall in price.
However, at the same time, there are several new trends in the economy that will determine the shape of the M&A market, at least until the end of 2022. The first is the mass exodus of foreign investors who conducted business in Russia. The second notable trend is the exit of Russian investors from their foreign assets. The third trend can be called a sharp decline in the value of enterprises not affected by sanctions areas.
Read more about the results of the M&A market in issue N292 of the monthly bulletin "Mergers and Acquisitions Market" of the AK&M News Agency.
All agency bulletins can be purchased atAK&M Analytical Bulletins and Research Store.
