Yukos makes Russia a leader

Deals

Russia led the developing markets in the number of mergers and acquisitions in the H1 of the year. 

According to the count of the Dealogic research company, the 188 M&A deals on the Russian market was worth $58.8 billion, up 33% over the same period of last year and leading the next closest market, China, by $2.8 billion. Its is doubtful, however, that Russia will maintaining its leading position, since that high indicator was connected with the division of Yukos assets. Worldwide, the United States lead in mergers and acquisitions, with 3443 deals worth $1.0223 trillion. Russia ranked 11th worldwide. Experts note that Russia's prominent position was attained with a comparatively small number of deals. Moreover, the 15 largest deals account for 80-90% of the money. Thus, in spite of the significant M&A activity on the consumer, financial, media and insurance markets, oil, gas and electricity made up the main worth of Russian mergers and acquisitions.

Goldman Sachs came in first worldwide among investment banks, serving as adviser to 229 deals worth $838 billion. Morgan Stanley was advisor to 180 deals worth $450 billion. Experts note, that banks' compensation varying greatly and depends little on the size of the deal. Some investment banks may receive a small fee for formally participating in a major transaction for the sake of their image. One banker named Rosneft's acquisition of Yukos assets as an example of this. Morgan Stanley was the advisor in that transaction.

Russia's place in the ranking will fall now that Yukos had been divided up. Rosneft spent $25.14 billion on Yukos assets in the period under consideration. That will not be so, if Rosneft and Gazprom begin exchanging their former Yukos properties, however. Otherwise, the M&A market is expected to be $25-30 billion with the acquisition of electric generating plants. The largest M&A deal coming up may be between Gazprom and SUEK. (kommersant.com)

ADVERTISEMENT

Consumer price levels below EU avg in 2020 Analysis

Consumer price levels below EU avg in 2020

Lawmakers approve 2022 budget Parliament

Lawmakers approve 2022 budget

Breast cancer screening at Dr. Rose Private Hospital Interview

Breast cancer screening at Dr. Rose Private Hospital

Budapest launches revamped coupon card for visitors City

Budapest launches revamped coupon card for visitors

SUPPORT THE BUDAPEST BUSINESS JOURNAL

Producing journalism that is worthy of the name is a costly business. For 27 years, the publishers, editors and reporters of the Budapest Business Journal have striven to bring you business news that works, information that you can trust, that is factual, accurate and presented without fear or favor.
Newspaper organizations across the globe have struggled to find a business model that allows them to continue to excel, without compromising their ability to perform. Most recently, some have experimented with the idea of involving their most important stakeholders, their readers.
We would like to offer that same opportunity to our readers. We would like to invite you to help us deliver the quality business journalism you require. Hit our Support the BBJ button and you can choose the how much and how often you send us your contributions.