Problems of Mergers and Takeovers in the Russian Corporate Sector

• Published in: Problems of economic transition Vol. 46; no. 7; pp. 5 - 64
• Main Authors: RADYGIN, A., ENTOV, R., SHMELEVA, N.
• Format: Journal Article
• Language: English
• Published: Abingdon Routledge 01-11-2003; M.E. Sharpe, Inc; Taylor & Francis Ltd
• Series: Problems of Economic Transition
• Subjects: Acquisitions & mergers; Economic conditions; Organizational structure; Privatization; Russia
• ISSN: 1061-1991; 1557-931X
• DOI: 10.1080/10611991.2003.11049862

It is possible to identify several phases of mergers and takeovers. The first phase (post-privatization) lasted from the mid-1990s to the 1998 crisis. If one includes privatization transactions, this particular period is characterized by "takeovers through privatization". A second phase (the "post-crisis boom") began in mid-1999 and continued up to 2002. During this period the expansion of industrial groups was accompanied by an intensification of asset consolidation. A third phase reorganization by "downturn") is beginning at the present time. Relatively amorphous conglomerate-type entities are giving by to vertically integrated structures of a more homogenous nature with clear-cut organizational-legal boundaries. To a considerable extent, the consolidation and reorganization of assets will remain the dominant institutional process for the next several years.