AK&M announces April leaders of Russian M&A market

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AK&M 09 June 2021 23:34

Finance was on top of the ranking of contributors to the M&A market in April 2021 (accounting for 29.6% of the M&A market volume) with 8 transactions for a total amount of $628.4 billion, which is 8.7 times above the April 2020 result ($72.6 million). The largest transaction of the period was the acquisition by Region Group of NPF Safmar, a large privately-owned pension fund, from the Gutseriev family for an estimated $360.6 million, according to the AK&M Information Agency's Mergers and Acquisitions Market bulletin (issue 278).

Construction and development stood second with 27 deals totaling $293.4 million, which is 27.6% below the April 2020 result. The industry accounted for 40.9% of the number, 13.8% of the market volume. The largest transaction of the month was the sale by Orientir Group of the Orientir North-4 industrial park in Moscow region with a total area of about 105,000 sq m to the Professional Logistics Technologies (PLT) logistics platform, for an estimated $60.5 million.

Agriculture ranked third (11.5%) with five transactions totaling $243.4 million. Not a single deal with agricultural assets hit the market in April 2020. The largest transaction of the reporting period was the acquisition of Promagro's agricultural assets by Sibagro Holding for an estimated $121 million.

The mining industry stood fourth (11.2%), with 4 transactions worth $228.2 million. No M&A deals were registered in the sector in April 2020. The largest transaction of this period was the acquisition by entities of ChelPipe ex-owner Alexey Komarov of the Kumroch virgin gold and silver deposit from Renova Group for an estimated $225 million.

The fuel and energy sector rounded out the top 5 accounting for 9.4% of the market volume with one transaction worth $200 million (10 times below April 2020 when three transactions for a total amount of $2.01 billion were concluded). The largest transaction of the reporting period was consolidation of s 100% stake in Arctic Mining Company (AGC) by AEON Corporation's owner Roman Trotsenko.

Interestingly, not a single deal was registered in the previously highly M&A active mechanical engineering industry in April 2021.

More details on the M&A market performance in April 2021 are available in issue 278 of AK&M Information Agency's MERGERS AND ACQUISITIONS MARKET monthly bulletin.