Mergers and acquisitions of Russian market

Russia-IC ^ | December 14, 2006 | Olga Pletneva

[eastern]

The M&A market is found relevant in lots of countries including Russia. The other day the informational agency Bloomberg published its traditional annual market research across the globe. A bit earlier, in the middle of November, the third annual national forum Mergers and Acquisitions of Russia took place. The research results determined the rating of the most civilized transactions at the M&A market.

Western M&A markets got used to mergers prevailing over acquisitions, but as for the Russian part, here acquisitions form the major share of dealings. No wonder that record high rates of transactions’ number ($3.1tr in the world and $52-57bn in Russia) have generated a need to conduct an audit for quality of transactions in the RF. The “quality” implies conformance of transactions to world standards. 20 deals made at the Russian M&A market were found corresponding high corporate standards. According to the survey results they beneficially affected the economy of the country. Here’s the list of the most successful and significant transactions:

Russian Aluminum – SUAL – Glencore

Experts gave the top position to the recent merger of Russian and foreign aluminum companies – Russian Aluminum (Rusal), SUAL and Glencore. Rusal controls a wide range of plants dealing with aluminum processing. August 2006 Rusal started repurchase of its own stock in view of upcoming merger with SUAL and Swiss Glencore. The companies merged October 9. Rusal’s share in the joint company made up 66%, SUAL’s – 22%, Glencore’s – 12%.