Pecularities of M&A Process in Emerging Markets: Evidence from Russia and China

Emerging markets remain attractive for foreign investors due to their rapid economic growth rates and possibilities for profit-making. One of the methods to make investments into foreign countries are the M&A deals. The article discusses the M&A markets of China and Russia as the key representatives of emerging markets. In the article condition and development dynamics are analyzed. The author exposes main investor and deal types and key sectors that are the most attractive for participants of M&A deals. The article also reveals features of M&A deals realizations and legislative limitations for such deals in Russia and China. The author makes comparison between Chinese and Russian M&A markets and draws conclusion that M&A markets of these countries have much in common because of institutional peculiarities expressed in excessive government interference and imperfect legislation. At the same time the author outlines that Chinese M&A market surpasses the Russian one, that is connected with the economic development level and dynamics of the key macroeconomic indicators of China that also outstrip the Russian ones.