Monthly M&A Insider - Mergermarket

Russia
• During the first quarter of 2009, Russia has been focusing
primarily on domestic acquisitions. Staying closer to home
has been an increasing trend in the Russian M&A market.
Out of the total domestic deals approximately 25% of
activity in terms of quantity, was seen in the Financial
Services sector, 16.67% in the Energy, Mining & Utilities
sector, and around 12.5% in the Leisure sector.
• Russia has invested a total of €1.02bn in the US, buying
up mining and industrial assets. Russian Surgutneftegaz
has also made a substantial investment in Hungary valued
at €1.4bn. The listed oil and gas company has acquired
a 21.2% interest in MOL Hungarian Oil and Gas Public
Limited Company, from OMV AG, the listed Austria based
oil and gas exploration group. The transaction was part
of the bidder’s strategy to strengthen its position in the
European market.
• European investors have decided to back away from
making major acquisitions in the region. Germany invested
only €30m during the first quarter. The investments from
Russia’s strongest trade partners such as Sweden, Italy
and France, have virtually disappeared. On the other hand,
the inflow of cash from the rest of the world has not been
diminished; on March 6, the South African financial group
Standard Bank Group Limited, announced its agreement
to acquire a 33% stake in Troika Dialog Group, Russia’s
investment bank, for a total consideration of €237m.
Russia
• Russia’s midmarket M&A activity has managed to
stay fairly steady in Q1 09 at €943m compared to the
previous quarter valued at €949m; however, these are
still the lowest figures we have seen since 2005. The
deal flow, in terms of quantity has decreased by 31.25%
from 16 transactions in the forth quarter of 2008 to
11 transactions in the first quarter of 2009. Given the
current drop in large deals, an increase in the mid-market
transactions is anticipated towards the end of the year.
Monthly M&A report – 195