The braided 500-rouble and 5000 denominations on a chessboard.
Photo: Pavel Solov
| Other Photos |
 |
|
 |
M&A Deals Manifest Vigorous Growth
Russia’s market of mergers and acquisitions widened nearly 50 percent on year in the first half of 2007. Moreover, the 1.5-fold growth was recorded both in deals’ number and in their amount.
Globalization of Russia’s companies is the key vector for the M&A advance – the share of transcontinental deals is stepping up continuously. Nevertheless, Russia accounts for no more than 2 percent of the M&A market worldwide.
Two percent isn’t bad, said Wilfried Pototschnig, who is in charge of the KPMG’s M&A business in Russia and CIS. According to Pototschnig, the market is very young and of little history. The EU has roughly 6 percent.
But Europe is behind Russia in terms of the growth rates. In 2007, they expect the market growth of roughly $100 billion, the official specified, emphasizing that Russia benefits from the increase in per capita income, mortgage development, economic advance.
At the same time, the liquidity difficulties in Russia that followed the U.S. sub-mortgage crisis have revealed a grave problem – Russia’s business is being funded from overseas. “And what are we doing with our money, where are our gold and foreign exchange reserves?” wondered Dmitry Afanasiev, who chairs the partnership committee at Egorov, Puginsky, Afanasiev & Partners. “They are in Europe under 3 percent on year, even in dollars sometimes, which are going down. How to direct this money supply to advance our economy - in many ways, it will be a material factor for further development of M&A market,” Afanasiev was emphatic.
www.kommersant.com
|
|
|
