Importance The world practice shows that over the past 20 years 40-60% of mergers and acquisitions have not yielded a synergistic effect. In this connection, it is extremely relevant to develop methodologies of assessing potential synergetic effect and financial efficiency as a criterion of reasonability of M&A deals. Objectives The article aims to assess the financial efficiency of the largest deal in Russia over the entire history of M&A transactions: a friendly takeover of JSC "TNK-BP Holding" by JSC "Oil Company "Rosneft", which was held in March, 2013. Methods We propose a model to assess the financial efficiency of a M&A transaction, including the assessment of synergistic effect at different stages of the transaction. This model has five phases: assessment of investment attractiveness of the parties to the transaction; valuation of the target company and the acquiring company; valuation of the merged company and assessment of synergetic effect; assessment of financial efficiency of the merged company; identifying financial efficiency of the transaction. We valued JSC "Oil Company "Rosneft" and JSC "TNK-BP Holding" based on the net cash flow method (income approach) and the peer method. Results On the basis of the analysis we conclude that the acquisition in terms of improving the financial sustainability of the purchasing company was reasonable. Conclusions and Relevance Currently, the there is no positive financial effect of the performed transaction, however, it is necessary to take into account that the transaction was completed only recently, and due to the complexity of the post-integration, the main synergistic effect will fall on 2015-2017 time period.
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