AK&M announces results of Russian M&A market in November 2020

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AK&M 30 December 2020 22:03

In November 2020, the market of M&A events worth at least $1 million remained extremely weak. The total amount of M&A transactions dropped 3.2 times year-on-year to $2.35 billion against $7.42 billion a year earlier. The number of transactions stayed roughly flat: 37 transactions in November 2020 against 41 deals a year earlier, according to the recent issue of AK&M Information Agency's MERGERS AND ACQUISITIONS MARKET monthly bulletin.

The amount of M&A transactions in the reporting period declined weaker (down 2.67 times to RUB 178.2 billion from RUB 475.31 billion in November 2019) which is due to the Russian ruble depreciation in ruble terms.

November saw completion of one billion-plus transaction, the fourth deal exceeding $1 billion in 2020, the purchase by Vladislav Sviblov's entities of Highland Gold, a major gold mining company which owns five gold mines in Russia, for $1.45 billion, from Roman Abramovich, his partners and British shareholders. However, disregarding this transaction accounting for more than 60% of the total M&A market volume in November, the average transaction value fell 3.3 times year-on-year to $25 million from $83.3 million in November 2019.

Assets in the construction and development stayed in the limelight in November accounting for 45.9% of the total number of M&A transactions. According to AK&M analysts, demand for such assets is set to stay high, despite their smaller size. There are many factors at play, including the transition of the housing construction market to project financing, which gradually ousts weak players from the market.

The COVID-19 coronavirus pandemic continues to affect the market significantly, with the result that the M&A activity declined both in the Russian and global M&A markets. In a number of industries, IT and telecom assets grew in value amid the pandemic, but most of the transactions in other industries involve small and troubled companies.

More details on the M&A market results in November 2020 are available in issue 273 of AK&M Information Agency's MERGERS AND ACQUISITIONS MARKET monthly bulletin.

All bulletins of AK&M Information Agency are available on the AK&M Research Bulletin Store.