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Russians Trade Raw for Technology
The aggregate worth of M&A transboundary deals with Russia’s assets involved exceeded $48.5 billion past year. According to the recent report of KPMG, the annual growth of over two fold could be attributed not only to the greater interest of Russia’s companies in global expansion but also to stability of political situation in the country.
Under the report of KPMG, nonresidents clinched 126 deals worth $25.4 billion past year to acquire the assets in Russia, mostly in power engineering and finance sectors. Europe’s giants, E.On and Enel, spent over $10 billion to buy the stocks of Russia’s energy operators, the Fourth Generation Company of Wholesale Electricity Market (WGC-4) and the Fifth Generation Company of Wholesale Electricity Market (WGC-5). The KPMG report mentions Absolut Bank, RESO-Garantia, NASTA and ROSNO insurers in its financial section.
Russia’s companies bought foreign assets for the worth of $23.1 billion past year; oil and metal companies were the most aggressive again - profiting on skyrocketing prices for their product, they had accumulated vast financial resources, which they were eager to invest. The biggest deal was Norilsk Nickel’s purchase of Canadian LionOre for $5.3 billion. The presence of non-primary companies in the M&A transboundary deals widened past year and the extent of the acquisitions in engineering and chemical industries became quite notable. What’s more, the players tended to eye access to innovated technology in addition to the markets.
So, KPMG predicts the surge in activity on the M&A market in the nearest years. The booming economy of Russia makes its market more attractive for western companies, while the growing financial power of local buyers and the experience that they have generated enable them to approach the markets of both developed and developing nations.
www.kommersant.com
All the Article in Russian as of Mar. 31, 2008
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