MAC risks shown by Sberbank merger

Author: Gemma Varriale | Published: 23 Nov 2011

One of Europe’s biggest banking M&A transactions this year involved intense negotiations over material adverse change (MAC) clauses to deal with market turbulence, according to a lead lawyer on the deal.

With a purchase price of approximately €645 million (£557 million), the landmark sale saw Russia’s Sberbank acquire 100% of Volksbank International (VBI), which comprises nine banks in eight central and eastern European countries.

“It’s difficult for both sellers and purchasers to get banking deals done now because we are seeing market conditions...