AK&M reviews results of Russian M&A market in 2020

AK&M 17 February 2021 13:53

In 2020, the market of M&A deals priced at over $1 million weakened significantly compared to the previous year. The total amount of transactions decreased by 31.6% to $38.14 billion from $55.73 billion a year earlier, according to the recent issue (no. 274) of AK&M Information Agency's MERGERS AND ACQUISITIONS MARKET monthly bulletin.

The number of transactions increased to 466 deals in 2020 from 421 a year earlier. However, assets generally became cheaper. The average transaction value decreased by 32.9% year-on-year to a historic low of $41.3 million from $61.5 million in 2019.

Only 6 transactions amounted to more than $1 billion, which is twice below the 2019 result (12 major M&A deals). The largest transaction of 2020 involved a state-owned company as Rosneft and Eduard Khudainatov's Independent Petroleum Company exchanged assets, the amount of transaction reaching $9.6 billion. AK&M analysts estimated the transaction at $5 billion before the transaction details were disclosed in Rosneft's IFRS statements.

The friendly deal in the IT sector, the sale by Anton Cherepennikov of X Holding to Alisher Usmanov in March, ranked second, the estimated price being $2.17 billion.

The third largest M&A deal was consolidation by Finland's Fortum Corporation of a 73.4% stake in Germany's Uniper Concern, the owner of a 83.73% stake in Russia's PJSC Unipro, for an estimated $2013.6 million.

More details on the M&A market results in 2020 are available in issue 274 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.