Sberbank (largest Russian bank) and Yandex (operates the largest search engine and other services in Russia) signed a letter of intent — the parties want to establish a joint venture on the basis of “Yandex.Market” (online market place).
Under the terms of the LoI, the Sberbank invests 30 billion rubles in “Yandex.Market”. At the time of the transaction partners evaluated the new company at 60 billion rubles “without taking into account future synergies”. The parties will have equal shares in the company, and up to 10% of the company’s shares will go to the creation of options for the employees of “Yandex.Market”.
The transaction will be closed after the signing of the binding documents for creating a joint venture, and once comprehensive due diligence is run on “Yandex.Market” and the necessary regulatory permissions obtained. The parties expect that this will happen before the end of 2017.
“Yandex.Market” will continue to operate under the current management team headed by the Director General Maxim Grishakov. He will also join the Board of Directors of “Yandex.Market”. The Board will have three representatives of “Yandex” and three from “Sberbank”.
The company expects that the integration of infrastructure and technologies will allow them “to develop the ecosystem of electronic commerce”, involving the purchase and sale of goods, including digital, as well as related products and services.
Maxim Grishakov expects that due to the deal users of the service will be able to use “Sberbank’s well-developed financial and payment infrastructure”, for example, a purchase on credit. In addition, Sberbank investment should strengthen the position of “Yandex.Market” in Russia.
“Participation of Sberbank in the creation of a leading player in the field of electronic commerce is important for the development of the digital ecosystem of Sberbank and for the economy as a whole. This partnership will open new opportunities for Russian companies, players in the e-Commerce market, small and medium business, as well as will create conditions for the growth of the export of Russian products abroad, and for foreign participants of the market” — are words of the President and the Chairman of the Board of Sberbank German Gref.
“The overall market is changing, we are in the midst of great change and hope that our joint efforts will lead to repeated growth of “Yandex.Market”, — said the head of the Yandex group of companies Arkadiy Volozh.
In mid-January, the newspaper “Kommersant” reported about a possible joint venture with the participation of Sberbank and Aliexpress in the first half of 2017. “We are talking about creating a company worth several billion dollars, which will be the largest player in the market of cross-border e-Commerce in Russia and some other countries”, — explained the source. In its annual report for investors “Yandex” called this “the risk to Yandex brand and Yandex business” regarding possible cooperation of Sberbank and a Chinese company.