M&A in Russia grows 70%
Last year was a record year for M&A in the CIS, according to a report prepared by professional services firm Ernst & Young. The report. Mergers and Acquisitions in the CIS, reveals that the Russian M&A market, the largest in the region, grew by 70% to $30 billion for 2004. Ukraine and Kazakhstan followed Russia with $2.6 billion and $ 0.7billion in M&A activity, respectively.
"With the improving economic performance and high rates of return on equity, major CIS countries have become important markets for cross-border acquisitions. More and more international players have moved past the analysis phase and are now making acquisitions," says Mark Jarvis, Ernst & Young Managing Partner, Client Service & Accounts and Transaction Advisory Services leader. "We are also seeing growth from Russian and Ukrainian companies making acquisitions abroad. Major industrial holdings are beginning to leverage their strong cash positions on the wave of higher commodity prices and greater participation in the capital markets."
"With the cross-border and domestic deals already planned, it's likely that 2005 will also show high growth in the Russian M&A market." says Aleks Sapojnikov, Transaction Advisory Services Partner and leader of the Mergers and Acquisitions group.