Mid-market M&A in Russia in 2008-1H 2009

Download

When the global financial crisis finally hit Russia in 2HY 2008, M&A mid-market activity contracted within a relatively short period, according to the PricewaterhouseCoopers survey “Sustainable prospects: mid-market M&A in Russia in 2008–1HY2009”.

The number of mid-market M&A deals amounted to only 117, as compared to 202 in 1HY 2008. Moreover, only 63 deals were made in 1HY 2009. In value terms, the decrease was also significant: from USD 23.6 billion in 1HY 2008 to USD 13 billion in 2HY 2008 and down to USD 7 billion in 1HY 2009.

Furthermore, the share of deals at the lower end of the mid-market segment (USD50m to USD150m) slightly increased from 52% to 55% if one compares 1HY2008 to 2HY2009.

The majority of mid-market deals in 1HY 2009 were in the utilities and oil and gas sectors—these represented 17% and 15% respectively of all mid-market deals in Russia. Moreover, the mining sector was among the key sectors based on deal value, whereas e.g. in the retail and consumer sectors deal activity dropped over the same period.