8. The Role of Trust in Value Creation: The Case of a Cross-Border Acquisition in Russia

During the past few decades, the amount of mergers and acquisitions (M&As) has increased dramatically in the global marketplace. At the same time, the share of cross-border acquisitions in the total value of global M&As has also grown significantly (Bertrand and Betschinger 2012; Stahl et al. 2012), indicating that they have been gaining ground as a preferred mode of internationalization (UNCTAD 2007). Simultaneously, there has been a clear shift of foreign direct investment (FDI) flows to developing and transition economies, and especially to the so-called BRIC countries (i.e. Brazil, Russia, India, and China), which have attracted the attention of multinational corporations (UNCTAD 2010, 2014). Indeed, in 2010 approximately one-third of global M&As (both in value and number of deals) took place in emerging markets (Bertrand and Betschinger 2012). However, M&As in the context of the BRIC countries have received relatively little interest in academic research (Bertrand and Betschinger 2012). Furthermore, in comparison with other major emerging markets (such as China and India), Russia has seldom been presented in international business research, even though the country has emerged as an important international business location during the past two decades (Tretyak 2013). This can also be seen in the large share of foreign participation in Russian M&A deals (Radygin 2010).