VTB: activity in M&A sphere to burst shortly

VTB expect a burst of activity in the M&A sphere due to the increase of activity on equity capital markets amid a revival in the economy.

“If we talk about M&A, the rise of activity on equity capital markets is often followed by a burst of activity in the M&A sphere. When companies successfully place shares, many of their competitors and partners also start considering such an option. Some of them conclude that for some reasons they are not ready for entry or start reviewing their strategy as a whole. They then realize that they, for example, need to expand or grow faster or revise their ESG-strategy. This leads to a multitude of M&A deals because companies are either trying to purchase other companies to expand or spin-off the assets that might be an obstacle for a higher assessment”, said Alexander Pukhaev, Head of Global Markets Investment Banking at VTB Capital, speaking at VTB Capital's forum “RUSSIA CALLING!”.

He also noted that 2021 was rich in emitent activity on capital markets. This was achieved due to a number of factors.

" During 2021 we are witnessing the increase of activity and interest of our clients in stock market. As you know, IPOs and SPOs occurred during the entire year. Only few of them were postponed. As of today, the number of companies that are planning to be listed next year is even larger than the number of emitents already listed this year. We are not seeing any drops in activity. Of course, the market environment can have its effect on that. But right now companies from virtually all sectors, both traditional (metal industry, ore mining) and new (IT, retail, consumer sector) express their interest”, said Pukhaev.