According to a new study in 2009 in Russia will have the largest number of mergers and acquisitions in the ICT sector and media in Central and Eastern Europe (CEE) and CIS. The biggest obstacle to the consolidation of experts called the problem of regulating the sector.
As the joint study of British lawyers and analysts Mergermarket CMS, the majority of respondents (62%) as a whole is optimistic about the prospects for mergers and acquisitions companies in the IT sector, media and telecommunications in Central, Eastern Europe and CIS. 72% of the respondents also noted that the liquidity crisis would not have a negative impact on the sector in the region. In the poll taken part heads of major IT-sector companies from Western, Central and Eastern Europe as well as investors who participated in transactions on Mergers and Acquisitions in CEE over the past three years.
Respondents felt that the most o majority of consolidation activity in the ICT and media sector over the next year will be celebrated in Russia; behind it with a small gap followed by Poland and the Czech Republic. The lowest consolidation activity seen in Croatia and Slovakia. The largest volume of transactions will be in the software segment, as well as the advertising market and television broadcasting. Less prone to the consolidation of the publishing business, semiconductors and broadcasting sector.
60% of respondents believe that economic growth in CEE stimulates the growth of consolidation-transactions, while 13% of respondents indicate a trend towards consolidation in the market as a factor affecting the increase in the number of such transactions. Respondents also noted that further development of the region’s economy will have many positive side effects such as increased demand for integrated technology solutions and significant growth in the advertising market.
An estimated Mergermarket, the volume of consolidation-transactions in the ICT sector and media CEE and the CIS region decreased slightly in the quantity and price indicators for the first two quarters of 2008, slightly contrary to predictions of respondents. However, the view that the CEE countries will in the leaders by the number of such transactions, in line with the trends that were observed in Russia, Poland and the Czech Republic since the first quarter of 2007 for the second quarter in 2008, when these countries accounted for 63% of the total and 62% of the value of such transactions for the period.
The biggest obstacle to the implementation of the mergers and acquisitions in the region, especially in Russia and Ukraine, one third of those surveyed (33%) cited the problem of regulating the sector. 20% of respondents also pointed to political problems and another 20% – on the instability of markets in the region.
Russian Investors confirm that the domestic market, indeed, perhaps the most intensive processes M & A. “This is due to the consolidation of its low-and high-growth potential – told CNews in IC” Finam “. — For example, there is no segment SHPD players who are fully could qualify for federal status operators. At the same time, there are market leaders with significant financial resources. They are long enough to rely on buying assets that will last “. A similar situation, according to experts, and the media, where the absorption will be promoted at a faster rate of growth of regional advertising. In fact, higher activity of the consolidation process in Russia will explain exactly consolidation low compared with European values. [CNews]
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