Russia outbound M&A

SQUIRE SANDERS GLOBAL M&A BRIEFING – October 2013
Russia Outbound M&A
Squire Sanders Global M&A Briefing
2013
Over the past 20 years the Russian economy has developed into a global powerhouse,
and currently ranks as the 10th biggest worldwide. Although GDP growth rates may
undershoot targets in 2013, the economy has nonetheless posted gains in a time of
global contraction.
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10
20
30
40
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70
2005 2006 2007 2008 2009 2010 2011 2012 2013
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5000
10000
15000
20000
Number of deals
Value of deals US$m
Number of deals Value of deals US$m
Russia’s prominence on the world stage Russian Outbound M&A Trends
has, in large part, been underpinned by
its vast natural resources, especially
from the early 2000s onward, when
global commodity prices spiked for a
sustained period. That said, the economy
is becoming increasingly multi-faceted as
it begins to mature. The government has,
for instance, made a concerted effort
to foster industries such as technology.
With the ongoing establishment of the
Skolkovo Innovation Centre, the Russian
government hopes to lay the groundwork
for a Russian Silicon Valley.
This growing dynamism is beginning
to feed into M&A. Generally, domestic
activity has sustained Russian M&A,
with state-owned enterprises and
publicly listed companies acting as serial
acquirers. Although Russian outbound
We are pleased to present
the third Squire Sanders
Global M&A Briefing,
produced in association
with Mergermarket.
Contents include:
Announced outbound M&A
activity in H1 2013 declined in
volume 40% year-on-year (YoY)
to 18 deals, and dropped in
value 60% YoY to US$2.1bn
(see page 2)
Energy, mining and utilities
remains Russia’s standout sector,
but with shifts in the global
energy power balance, Russian
oil firms will look further afield
to diversify their portfolios and
mitigate risk (see page 2)
Ukraine and the rest of the CEE
accounts for more than one third
(36%) of all Russian outbound
M&A in 2011 through 2013
(see page 3)
There is growing interest in
financial services, as exemplified
by Sberbank’s acquisition of CEEbased
Volksbank International, as
well as Gazprombank establishing
a joint venture with Italian bank
Intesa Sanpaolothe (see page 4)
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