The total value of M&A transactions with a threshold of $1 million in October was a record

180
2
AK&M 03 December 2021 14:58

The volume of the M&A market with a threshold of $ 1 million in October 2021 increased markedly against the same period last year. The total value of transactions increased 12.5 times compared to October 2020, amounting to $10.55 billion against $847.1 million a year earlier. This is a record volume of October in the entire history of observations, according to the bulletin "Mergers and Acquisitions Market" of the AK&M News Agency.

At the same time, the number of transactions decreased: 36 transactions took place in October 2021, and 41 (-12.2%) a year earlier. Due to the growth of the ruble exchange rate in ruble terms, the amount of transactions of the reporting period increased less significantly - by 11.1 times to 744.148 billion rubles from 67.202 billion rubles in October last year.

This growth is due to the three billion-dollar deals concluded in October 2021 - the takeover of Tatar TAIF by the largest petrochemical company in Eastern Europe Sibur for $6.05 billion, the purchase by Siban Holding of 100% of Sibantracite Group for an estimated $1.7 billion and the acquisition by Kismet Capital Group of Ivan Tavrin of 100% in JSC First Tower Company for $1.34 billion. The three largest transactions in October accounted for 86.1% of the total monthly transaction volume. In October 2020, not a single transaction worth more than $1 billion was recorded

At the same time, the average transaction value (excluding the largest) increased 2.2 times year-on-year to $44.5 million from $20.7 million a year earlier.

In terms of the number of transactions, assets in construction and development continued to play a dominant role in October – 55.6% of the total number of transactions took place in this industry. Moreover, analysts believe that in the near future the demand for construction assets will not decrease. There are quite a lot of reasons for this, including the transfer of housing construction to project financing, which gradually displaces weak players from the market, as well as the fact that in a crisis, real estate remains one of the most reliable ways to save money. The consolidation of assets in the industry is expected to continue.

According to analysts, in the near future we should also expect a significant increase in the number of large transactions in various industries related to the post-crisis consolidation of assets, as well as the withdrawal of a number of assets from the framework of leading holdings to attract investors on the open market.

Read more about the results of the M&A market in the third quarter of 2021 in issue 28 4 The monthly bulletin "Mergers and Acquisitions Market" of the AK&M News Agency.

All agency bulletins can be purchased atAK&M Analytical Bulletins and Research Store