Year: 2023 | Month: May | Volume 68 | Special Issue

Influence of the M&A of Agricultural Companies on the Development of the Rural Areas

Olha Honcharenko Iryna Honcharenko
DOI:10.46852/0424-2513.2s.2023.19

Abstract:

The purpose of the study is to establish the main areas of influence of agribusiness, through the conclusion of M&A transactions on the development of adjacent rural areas and non-agricultural businesses. The authors used methods: generalisation-systematisation of scientific provisions; analogy and comparison – characteristics of changes in agricultural companies after the conclusion of M&A transactions; analysis and synthesis – features of the functioning of agricultural companies and their impact on the development of rural areas; algorithmization – definition of conceptual provisions for improving the problem under study. The areas of the impact of agribusiness on rural development were substantiated to achieve the goals of the study. The study describes the M&A market in the context of the most influential economic sectors of the country, highlighting the role and place of the agricultural sector. The values of land plots in land banks of the ten largest agricultural enterprises of Ukraine are analysed. A comparative description of individual agrarian companies that were parties to M&A transactions for 2020–2022 is conducted. A number of factors that affect the development of rural areas after the conclusion of M&A transactions are identified. It is determined that the regional development policy should be based on mutual cooperation between rural communities and agricultural companies. The practical significance of the study is that the consolidation of agricultural companies and the expansion of their field of influence on the region, including through active cooperation with local communities, will allow for achieving high indicators of socio-economic development in rural areas.

Highlights

  • Although the agricultural sector of Ukraine is characterised by high productivity indicators in any period of socio-economic development, Western investors and Ukrainian experts assess the country in the context of a large untapped agricultural potential.




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