AK&M summed up the results of the Russian M&A market in the first half of the year

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AK&M 11 August 2021 11:00

In the first half of 2021, the growth rate of the M&A market slowed down. The total value of transactions in January-June increased by 16.5% to $17.17 billion from $14.74 billion a year earlier. During this period, 294 transactions were recorded - 38.7% more than in the first half of 2020 (168 transactions). In ruble terms, the amount of transactions increased more noticeably - by 20.4% to 1279.5 billion rubles from 1062.6 billion rubles a year earlier, which is due to the fall in the ruble exchange rate. This is stated in the bulletin "Market of mergers and acquisitions" of the AK&M News Agency (issue 280).

However, more transactions worth more than $1 billion were concluded in the reporting period than last year - four against three. The largest transaction of the first half of 2021 was the January purchase of Citrix Systems IT company Wrike, a developer of a collaboration platform, from Andrey Filev and Vista Equity Partners for $2.25 billion. The second place was taken by the sale in May at competitive auctions of the property of the Antipinsky Oil Refinery, which was acquired by Anatoly Yablonsky's Rusinvest LLC for $1.51 billion. In the third place was the March purchase by the Pipe Metallurgical Company of its competitor - the ChTPZ group-from Alexey Komarov for $1.11 billion. Completing the four billion-dollar deals is the May sale by Oleg Tkach and Vladimir Uzun of the largest Russian publishing house of educational literature "Enlightenment" to a consortium of state-owned companies, including Sberbank, RDIF and VEB.Russia", for $1.1 billion.

However, in general, assets continue to fall in price. The average value of transactions (excluding the largest ones) decreased by 6.4% to $38.6 million from $41.3 million in January-June 2020.

Assets in construction and development continued to play a dominant role – 44.6% of the total number of transactions took place in this industry. Moreover, AK&M analysts believe that the demand for such assets will not decrease, despite the reduction in transaction volumes. There are quite a lot of reasons for this, including the transfer of housing construction to project financing, which is gradually displacing weak players from the market. Analysts expect the consolidation of assets in the construction market to continue, although the cost of purchased enterprises will continue to become cheaper.

However, the general trend, both in Russia and abroad, is positive for the M&A market. As for the Russian market, it is somewhat behind the global one, but here analysts can also expect an increase in the number of large transactions in the near future.

Read more about the results of the M&A market for November 2020 in issue 280 of the monthly bulletin "Mergers and Acquisitions Market" of the AK&M News Agency.