Handbook of Emerging Market Multinational Corporations
Show Less

Handbook of Emerging Market Multinational Corporations

Edited by Mehmet Demirbag and Attilia Yaprak

This Handbook, compiled by leading scholars of international business, focuses on why emerging market multinationals internationalize, how they do so, what advantages they explore and exploit as they internationalize, and what strategies they implement when competing abroad. Collectively, these contributions offer interesting insight into emerging market multinationals’ internationalization drivers, growth processes, and expansion behaviour and underscore how these might be similar to and different from the international expansion of developed country internationalizing firms.
Buy Book in Print
Show Summary Details
You do not have access to this content

Chapter 11: Acquisitions as engines of foreign expansion of Russian multinationals

Kalman Kalotay


Compared with the majority of emerging-market investors, Russian multinationals are latecomers to the global business scene. The majority of the large Russian firms that we know today were established only in the mid-1990s, during the country’s privatization process. Their outward investment started to grow fast only a decade later, but has weathered the global crisis relatively well. The majority of these multinationals are based on natural resource extraction, heavy industries (metallurgy) and selected services such as telecommunications and banking. Given these characteristics, it is not surprising that they opt for acquisitions as a preferred mode of market entry in their quest of fast conquest of markets abroad. This chapter analyses the main features of the foreign acquisitions of Russian firms such as the overall drive of Russian firms to control the value chain of their product, be it oil and gas, metals, food, banking services or telecommunications. It puts the analysis into the context of the full Russian market for acquisitions (dominated by local deals but also containing inward and outward investment) and of total foreign direct investment (FDI). The chapter also examines the main characteristics of the mega-deals carried out by Russian firms, such as their use to leapfrog into the global scene without passing the regional route. The concluding part attempts to answer the question if the recent speed of foreign acquisitions is sustainable under the new conditions of the global crisis.

You are not authenticated to view the full text of this chapter or article.

Elgaronline requires a subscription or purchase to access the full text of books or journals. Please login through your library system or with your personal username and password on the homepage.

Non-subscribers can freely search the site, view abstracts/ extracts and download selected front matter and introductory chapters for personal use.

Your library may not have purchased all subject areas. If you are authenticated and think you should have access to this title, please contact your librarian.

Further information

or login to access all content.