Features Of the Processes Of Mergers And Acquisitions In The Agro-Industrial Sector Of Ukraine's Economy

Abstract

The article considers mergers and acquisition deals that took place in the agro-industrial sector of Ukraine's economy in 2018-2020 and assesses key trends in the rural development of the country. Territorially the biggest part of Ukraine is rural areas, thus it’s obvious that their development shall and may have significant influence on the development of the country, as a whole. Purpose. The study was preceded by the following tasks: to describe and assess the main features of the processes of mergers and acquisitions in the agro-industrial sector of Ukraine's economy in 2018-2020. The theoretical basis of the study was papers related to the processes of mergers and acquisitions, the development of rural areas. Methods of synthesis and analysis were used. Data and information from the InVenture Investment datatbase, as well as the State Statistics Service of Ukraine (SSSU), were analysed, including data on changes in employment and unemployment for 2018 – 2020 in Ukraine. The obtained data were processed descriptively by statistical analysis methods. Results. According to the results of the analyses was find out that in the agro-industrial sector of Ukraine, the strategy of inorganic growth of enterprises (through the merger and acquisition deals) remains relevant and popular, the participants of the deals are mostly Ukrainian companies, and the subject in most cases is 100% stake in the company, however, foreign investors are also interested in the Ukrainian companies and find out Ukrainian economy, especially its agro sector, extremely interesting for investments. Conclusions. Speaking about the potential influence of the M&A activity on the rural areas development lets look at the employment rate on such territories, as this is one of the most direct indicator of the people’s prosperity. Observations show that the employment of the population of rural areas of Ukraine is declining much faster than the urban population. The connection between the activity of the local enterprises in the M&A deals and the prosperity of the local community has no linear dependences. The list of references includes appropriate literature, which forms a good base for the performed research.

The article considers mergers and acquisition deals that took place in the agro-industrial sector of Ukraine's economy in 2018-2020 and assesses key trends in the rural development of the country. Territorially the biggest part of Ukraine is rural areas, thus it’s obvious that their development shall and may have significant influence on the development of the country, as a whole. Purpose. The study was preceded by the following tasks: to describe and assess the main features of the processes of mergers and acquisitions in the agro-industrial sector of Ukraine's economy in 2018-2020. The theoretical basis of the study was papers related to the processes of mergers and acquisitions, the development of rural areas. Methods of synthesis and analysis were used. Data and information from the InVenture Investment datatbase, as well as the State Statistics Service of Ukraine (SSSU), were analysed, including data on changes in employment and unemployment for 2018 – 2020 in Ukraine. The obtained data were processed descriptively by statistical analysis methods. Results. According to the results of the analyses was find out that in the agro-industrial sector of Ukraine, the strategy of inorganic growth of enterprises (through the merger and acquisition deals) remains relevant and popular, the participants of the deals are mostly Ukrainian companies, and the subject in most cases is 100% stake in the company, however, foreign investors are also interested in the Ukrainian companies and find out Ukrainian economy, especially its agro sector, extremely interesting for investments. Conclusions. Speaking about the potential influence of the M&A activity on the rural areas development lets look at the employment rate on such territories, as this is one of the most direct indicator of the people’s prosperity. Observations show that the employment of the population of rural areas of Ukraine is declining much faster than the urban population. The connection between the activity of the local enterprises in the M&A deals and the prosperity of the local community has no linear dependences. The list of references includes appropriate literature, which forms a good base for the performed research.