Average cost of M&A transactions in Russia down 47.4% in January-June 2020

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AK&M 13 August 2020 16:26

In the first half of 2020, the average cost of M&A transactions (excluding the megadeals) in Russia decreased by 47.4% year-on-year to $41.5 million fr om $78.9 million in January-June 2019, according to the recent issue of AK&M Information Agency's MERGERS AND ACQUISITIONS MARKET monthly bulletin.

The COVID-19 coronavirus pandemic continues to affect the market significantly. Many companies have scrapped the previously planned acquisitions, preferring to use their resources to support the existing assets. The M&A momentum weakened both in Russia and globally.

The average cost of transactions pursued mixed trends, depending on the industries, In some segments, assets became more expensive, with retail, construction and development assets leading in the price growth responding to growing demand for assets. On the other hand, the average transaction price has decreased significantly in the segments wh ere the M&A activity shifts towards smaller assets, such as services and agriculture.

More details on the M&A market results in the first half of 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.