The fuel and energy sector took the lead in the M&A transactions in Russia in 2020, accounting for 34.9% of the total market volume with 12 transactions for a total amount of $13.8 billion, which is 7.7% above the 2019 result, according to the recent issue (no. 274) of AK&M Information Agency's MERGERS AND ACQUISITIONS MARKET monthly bulletin.
Last year's largest M&A event was the exchange of assets between Rosneft and Eduard Khudainatov's Independent Petroleum Company in December, the amount of transaction reaching $11.1 billion. This deal is the largest M&A event in the market for the whole year.
Construction & development industry ranked second in 2020, setting a record of 217 transactions, amounting to $7.1 billion, which is 17.3% above the 2019 result. The industry accounted for 46.6% of the number of M&A deals, 17.9% of the total market volume. The largest transaction in the construction and development sector was the acquisition by Sberbank of a 100% stake in GFI Investment Limited, the parent company of Filaret Galchev's EUROCEMENT Group, one of the world's largest cement producers, for $993.9 million in exchange for debt relief.
The information technology sector (IT) stood third with 30 transactions worth $3.53 billion (8.9% of the M&A market volume), 1.9 times below the 2019 result ($6.77 billion). The largest transaction of this year in the industry was the the sale by Anton Cherepennikov of X Holding to Alisher Usmanov in March, the estimated price being $2.17 billion, the second largest M&A deal of the year.
The chemical and petrochemical industry rose to the fourth place with 6 transactions worth $3.43 billion (8.6% of the market volume), which is 6.3 times more than in 2019. The highlight of the year in the sector was consolidation of 81.47% of the shares in PJSC Uralkali by Uralchem owner Dmitry Mazepin for $2 billion December, the fourth largest M&A transaction of the year.
The electric power industry rounds out the top 5 with 5 deals worth $2.26 billion (5.7% of the market volume). The largest transaction in the industry was a cross-border deal, consolidation by Finland's Fortum Corporation's of a 73.4% stake in Germany's Uniper concern which owns 83.73% of Russia-based Unipro PJSC, for an estimated $2,013.6 million, in proportion to the of Russian generation facilities in Uniper's business and taking into account the 46.65% stake in the concern acquired in 2018. The transaction was the third largest M&A event of the year, the biggest cross-border transaction.
It should be noted that deals were concluded in all sectors in 2020, even those in the deepest decline.
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.
