By Andrei Skvarsky
Russia's merger and acquisition activity is set to rebound 50% this year after a sharp decline last year, according to a KPMG report.
M&A collapsed in 2009 but corporate activity has been showing roots of recovery lately as confidence returns and prices fall, according to the report's authors. KMPG also forecasts a rise in future state-led privatizations.
Thomas Beck, director M&A at KPMG in Russia & CIS, said in a statement: "Rising disposals from the distressed asset portfolios accumulated by the financial sector during the crisis, as well as privatizations by the Russian government, will further contribute to the market growth."
Consumer markets, financial services, metals and mining were among the industries that showed the largest M&A decline in 2009, with transaction volumes in each of them plunging by about 80 percent.
Cross-border M&A activity dropped over-proportionally in 2009 as most companies were focusing on their home market rather than international expansion.
At the same time, the M&A volume in the oil and gas sector nearly doubled in 2009, the release said.
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