Corporate Control Market: Stages, Specific Features, Regulation
Russian Economy in 2016. Trends and Outlooks. 2017. Moscow. IEP, issue 38, pp. 348-380
36 Pages Posted: 17 Jul 2017
Date Written: July 7, 2017
Russia’s market for mergers and acquisitions came into being in the early 1990s when mass privatization of state-owned property gained momentum. More specifically, it was not until after the Russian financial crisis of 1998 that mergers and friendly takeovers took place in Russia. Up until then there were ‘acquisitions through privatization’ that can be regarded as a primary manifestation of the initial stage of building a market for corporate control (from 1992 till the onset of the financial crisis of 1998). Reorganization proceeded privatization in 1/3 of cases, was coupled with privatization in 1/3 of cases and followed privatization in 1/3 of cases. Also, the practice of consolidating Russian assets through both M&A and outsider shareholding was adopted in the mid-1990s. In 1998, the equity of about 40% of surveyed enterprises was partially held by outside corporate shareholders, and more than 13% of those enterprises were integrated with suppliers or consumers.
Keywords: Russian economy, bankruptcy, public enterprises
JEL Classification: G33, G38, P2, P31
Suggested Citation: Suggested Citation