According to the latest data, the volume of mergers and acquisitions (so-called M&A) in 2023 increased by 56% compared to 2022.
In total, in 2023, the total volume of such transactions in the Russian agro-industrial sector amounted to about 300 billion rubles. This is 56% more than in 2022.
At the same time, the number of transactions has increased significantly: from 51 to 80. However, the average transaction amount has decreased, experts note.
The most active mergers and acquisitions took place in the food industry sector last year. 26 transactions were carried out there, the total amount exceeding $1.6 billion.
Agriculture is in second place, with 46 transactions and a total volume of $1.52 billion.
Transactions were also actively carried out that were directly related to the departure of foreign companies that were curtailing their activities in the Russian Federation.
The volume of such transactions increased to 630 million rubles, although their number decreased when compared with 2022.
Agriculture is also an area in which such transactions are actively taking place. For example, in 2023 their volume amounted to almost $800 million, which is about 23% of the total market volume.
M&A transactions were carried out both in the livestock sector, and in the fishing industry, and in crop production.
What are the latest trends?
One of the main trends, according to experts, may be the continued withdrawal of foreign companies from the Russian market, and this is primarily typical for the food industry.
In addition, analysts expect increased interest from possible purchasing companies in various assets located in Siberia and the Far East.
Also, the trend towards further consolidation of agricultural holdings and their vertical integration is likely to continue.
Simply put, in Russia the trend towards further consolidation of companies will continue.
Experts are confident that potential buyers of various agricultural enterprises today have great opportunities.
For example, there are interesting objects in the production and processing of meat and fish, as well as the sunflower oil segment.
This is due to the fact that this industry largely works for export and is therefore quite profitable. For this reason, there are a number of companies that would be interested in purchasing oil extraction plants.
However, it is expected that in 2024 the volume of mergers and acquisitions may decline. This will be a consequence of the fact that most of the companies leaving the Russian market have already been sold.
