Mergers and Acquisitions in the Corporate Sector of the Russian Pipe Industry

Abstract

The relevance of this study is determined by the significance of mergers and acquisitions as modern tools for expanded diversified growth, direct investment, production synergy, and overcoming the increasing risks of companies’ external environment. The work clarifies the content of mergers and acquisitions from the perspective of reorganization and business development, dominant and partial shareholder control. The high concentration of the Russian pipe industry is emphasized, which is due to the historical territorial concentration of key enterprises in the industry and modern trends of consolidation and movement towards a large-scale oligopoly in the domestic market. The mergers are based on signs of both vertical and horizontal integration, with a focus on creating a model of business units, each of which represents an enlarged production complex. The key driving force is recognized as the growing domestic demand for pipe products from enterprises in the oil and gas sector and municipal infrastructure in the context of the priorities of the national development strategy and the active state policy of project financing. A consistent combination of tight integration tools with technological cooperation programs with strategic counterparties has been proven. Signs of a merger were noted at the level of consolidation of internal assets of infrastructure divisions of large companies in the metallurgical industry.