Global M&A Briefing: Russia Outbound M&A

    View Authors October 2013

    Squire Sanders is pleased to announce its third Global M&A Briefing, produced in association with Mergermarket.  In this latest edition we focus on Russia, reviewing the most recent outbound M&A trends, the key deal drivers and the outlook for the market.

    While M&A activity has dropped, and energy and resources remains the standout sector, there are signs that Russian oil companies are looking further afield for diversification; the TMT sector has increased in significance; and there’s a growing interest in financial services investment.  Our partners focused on the Russian market share their insights on all M&A developments.

    Highlights include:

    • The industrials and chemicals; energy, mining and utilities; and TMT sectors dominate the M&A landscape by volume in 2011 through 2013, comprising 56% of deal flow.
    • The shale gas boom in the US has altered the global energy power balance, with Russia set to be overtaken by the US as the world’s largest gas producer in the next 20 years.
    • The CEE and Ukraine has been the target of more than one third (36%) of all Russian outbound M&A in 2011 through 2013, reflecting the linguistic and cultural ties between the regions.
    • While dealmaking at the upper end of the market has remained relatively consistent, the middle and lower ends of the spectrum have contracted noticeably, with only 19 deals worth under US$100m in 2012 – a 44% decrease on activity from 2007.