Another strong year for M&A in Russia, following 2012’s record-breaking performance
2013 proved to be another strong year for Russian M&A following the record-breaking value of deals announced in 2012, which was driven by Rosneft’s acquisition of TNK-BP. Excluding this deal, Russian M&A reached its highest level for six years, with USD108.4 billion-worth of acquisitions in 2013.
The strength of Russian M&A is even more impressive when compared to global and European deal-making, where deal values fell by 3% and 12% respectively over the same period. These figures highlight the comparative resilience of the Russian market to global economic drivers.
Domestic transactions accounted for 80% (USD86.9 billion) of the value of deals announced in 2013, compared to just 60%1 (USD48.5 billion) in 2012. The share of domestic deals increased marginally in volume terms to 68% in 2013.
Although the relative share of outbound deals only declined by 3% in 2013, the value of foreign acquisitions by Russian buyers sank by 71% to USD4.6 billion; the lowest level for a decade as investors continued to focus on deploying capital in the domestic market. Russian inbound M&A accounted for 16% of the market and increased by 6% in value terms (to USD16.9 billion) despite a 6% fall in volumes.
The solid performance in Russia was driven by a return to dominance of the energy and natural resources industry which saw a significant increase in deal value.