Mergers, Acquisitions and Takeovers Case Study

Gazprom's Takeover of Sibneft : From a Local Monopoly to a Global Energy Company?

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Abstract:
In September 2005, the Russian state-owned natural gas behemoth, Gazprom, acquired Sibneft for $13.1 billion from Roman Abramovich, its biggest stakeholder. The acquisition is regarded as a strategic move by Gazprom to become a global energy company with interests in oil, oil processing and petrochemistry. However, scepticism prevails on the potential benefits to be accrued through the renationalisation of Sibneft, as these kinds of initiatives, after the collapse of the USSR, have traditionally led to operational inefficiency and decreased productivity.

Pedagogical Objectives:

• To highlight the rationale behind the acquisition
• To discuss the potential challenges that Gazprom might have to overcome to become a global energy company.

Keywords : Gazprom;Sibneft;Mergers,Acquisitions,Alliances Case Study; Hostile takeovers; Global oil industry; Natural gas production; Global energy companies; Renationalisation in Russia; Yukos; Lukoil; BP (British Petroleum); Globalisation strategy.

Contents : 
Gazprom and Sibneft: A Tale of Two Russian Energy Companies
Gazprom’s Acquisition of Sibneft: From Local Monopoly to Global Behemoth
Exports Outside of the CIS
2003 Oil Company Rankings by Oil Reserves
The Russian main Oil companies and the Composition of their Capital