The cost of bargains of M&A fell by 45% in the automotive world

As a result of general uncertainty in the economics in 2008, the automotive industry faced the reduction of number of bargains of M&A and of their cost. According to data of the publication of PricewaterhouseCoopers �Drive value � Automotive M&A insights�, after the period of exclusively high activity a this market in 2007, the volume of closed bargains fell by 9% and constituted 549 units in 2008 against 604 a year before. In 2008 the claimed cost of bargains decreased by 45% and constituted 31, 6 bln USD in comparison to 57, 1 bln USD in 2007. In connection with absence of accessible financing, the buyers were obliged to change the strategy and to make less significant bargains.
As Autonews reported, the biggest bargains, whose base was realization of strategy of consolidation and enlargement at the market, took place mainly in Europe. The examples of such bargains can be acquisition of share of the company Scania by the company Volkswgagen AG (4, 4 bln USD) and acquisition of the company Jaguar Land Rover by the company Tata Motors (2, 3 bln USD).
Among the biggest Russian bargains we could note the acquisition of 25% of shares of AVTOVAZ by the company Renault (1, 2 bln USD), acquisition of 75% of share in the group of the companies Musa Motors by the British autoretailer Inchcape PLC for 447 mln USD, as well as acquisition of 10% of share of the shareholder�s capital of KAMAZ by the German strategical investor Daimler AG for 250 mln USD.