GR in M&A deals

M&A (Mergers and Acquisitions) deals ensure the consolidation of companies or their core business assets through financial transactions between companies. In recent years, due to Western countries’ sanctions and the Russian regulator’s counter-sanction measures, certain M&A deals require state oversight. This specifically applies to transactions involving entities from unfriendly countries, which must obtain approval from the Governmental Commission for Control over Foreign Investments (the “Governmental Commission”). To facilitate this, a dedicated body, the Subcommittee of the Governmental Commission for the Control of Foreign Investments in the Russian Federation (the Subcommittee), was established. The Subcommittee is authorized to decide on issuing permits for residents to conduct transactions with foreign entities from unfriendly states and to carry out foreign exchange operations.

Given the state involvement and the special procedures governing these deals, the parties often need GR (Government Relations) support throughout the process, from preparing the application for deal approval to obtaining the necessary permissions. Moreover, experience shows that the success of such deals hinges on how effectively the company engages with the relevant state authorities.

Baikal Communications Group provides consultation on obtaining permits from the Subcommittee, ensures communication with government representatives, and helps companies mitigate risks involved in the deal approval process.