AK&M Information Agency reported that in 2011, the dependence of the Russian M&A market on major transactions (involving USD 1 billion and more) 2011 decreased a little.

According to the latest issue of AK&M Information Agency's monthly bulletin MERGERS AND ACQUISITIONS MARKET, the number of such transactions being 15 in 2011 against 12 in 2010, their share in the amount of the M&A market was 52.9% against 54.7% in 2010.

As AK&M analysts note, while the general market volume grew, there was a six month period revealing a downward trend in the mid size segment alone: from early 2010 to March 2011, the total amount changed in step with the amount without the largest deals. This synchronous movement was derailed at the end of Q1 2011, the amount without the largest events decreasing to local lows in May (USD 1.4 billion) and October (USD 1.9 billion) whereas the total M&A market volume was on the rise. The slump from February 2011 (the last month of the synchronous movement in the market) to October was about 56%. What does strike the eye is the fall off in the average deal value excluding the largest transactions: USD 35.6 million in October from USD 123.4 million in February.

This proves that all investors, maybe except for the largest companies, were not immune to the negative impacts coming in 2011 (the toughened tax burden upon Russian companies, foreboding a new wave of the financial crisis, the shattered business confidence) being forced to make deals mainly in bottom price segments (involving assets up to USD 50 million worth) putting major deals on hold, for more than half a year.

The synchronous trend and the upward movement in the mid-size segment were restored only in November 2011 as the amount of transactions except major deals leveled off at USD 3.6 to USD 3.9 billion per month, the average deal value except the largest events rose to USD 50 to USD 55 million.

(Source from www.akm.ru)