Consolidation transactions most numerous on Russian M&A market
MOSCOW, December 4 (RAPSI, Maria Zuyeva) – Corporate consolidation transactions are the most numerous on the Russian M&A (mergers and aquisitions) market, Dmitry Sedov, Co-Head of Investment Banking at Goldman Sachs (Russia), said at an IBA conference in Moscow on Thursday.
According to Sedov, the global M&A market has grown 60 percent year on year and reached $2.7 trillion. At the same time, many transactions in the Russian M&A market were suspended, with consolidation transactions taking the lead.
The expert said that many clients in various sectors (private companies) split into two groups. The companies that try to manage their risks and save funds even if doing so could damage their potential growth and standing on the market took a wait-and-see attitude. Others saw the difficult situation in the M&A market as an opportunity to push back their rivals and build up their businesses. These companies accept higher-than-usual risks, which is fueling consolidation transactions in several sectors, in particular dot coms, Sedov said.
Speaking about funding, he said that an increasing number of companies are considering buying for shares and via so-called purchase money mortgages (by installment).
The Thursday conference in Moscow was organized by the IBA’s Corporate and M&A Law Committee, the IBA’s European Regional Forum and the Russian Arbitration Association.
The leading economic and legal experts have met for the sixth time to discuss the latest trends in the M&A market in Russia and the CIS. The conference agenda included the most topical issues of M&A transactions.