AK&M reveals Russian M&A market's July and August results

AK&M 09 October 2020 16:40

The M&A market with a lower transaction price threshold of $1 million shrank significantly in July and August 2020. The total amount of transactions dropped 2.8 times year-on-year to $2.51 billion against $7.02 billion a year earlier, according to the recent issue of AK&M Information Agency's MERGERS AND ACQUISITIONS MARKET monthly bulletin.

The number of transactions showed almost no change with 57 transactions in July-August 2020 against 58 deals a year earlier. The amount of transactions in the reporting period fell 2.46 times to RUB 185.01 billion from RUB 454.28 billion in July-August 2019. The average transaction value increased by 0.7% year-on-year to $44.1 million from $43.8 million (excluding megadeals) in July-August 2019. The M&A activity in August was at the lowest level since February 2015.

Not a single megadeal worth at least $1 billion was registered during the period. The largest transaction in August was in the chemical sector as VEB.RF completed the transfer of 100% of Ammonium LLC to Kemerovo-based JSC Azot. The bank sold the loan receivables and Ammonium's debt was converted into equity. The transaction amounted to $900 million. The next largest deal is 4.5 times cheaper: PIK Group acquired a controlling stake in Ozernaya 44 Specialized Developer, which owns a 72.4 ha plot in the South Ochakovo industrial zone, for an estimated $197.6 million.

More details on the M&A market results in July and August 2020 are provided in issue 268 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.