Oleg Bakhmatyuk, the main shareholder of Ukrainian agricultural holdings UkrLandFarming and Avangard, forecasted that the agricultural holding resulting after consolidation of the companies will be the largest one in Eurasia.
According to him, to date specialists carry out the latest calculations to have the right to declare creation of the largest agricultural company at the territory of Eurasia. As a reminder the businessman transferred 77.49% shares of the holding company Avangardсo to property of the holding company UkrLandFarming.
Due to the constant threat of food crisis, the united company intends to be the flagship of Ukrainian exports of food products to developing countries, and the leader of the domestic food market, said O.Bakhmatyuk.
The entrepreneur said that he decided to streamline his ownership in both companies in order to achieve the maximum synergistic effect for both businesses. O.Bakhmatyuk explained that the combined structure should receive significant savings, first of all for purchasing of feed grains, which is used for production of forage for shell egg production in the company Avangardсo. Thus, the company receives the completely closed cycle of production, the company can reduce cost of the final product to the most advantageous price for the market.
He also noted that the efficiency of production will increase due to combined usage of grain storage facilities and other resource opportunities of both UkrLandFarming and Avangard.
Besides, the united company will receive marketing advantages, and become able to use cross-channels for products sales of both holding companies on the domestic market and to expand export capacity, said O.Bakhmatyuk.
The transaction will be closed within the following two weeks. Shares of Avangardсo will continue to be listed on the London Stock Exchange.
According to the announcement, the united holding company of O.Bakhmatyuk will have the largest land bank in Ukraine of nearly 500 thsd ha, livestock of 65 thsd head of cattle, chicken stock - 24 mln heads. The company will own 18 meat processing plants, two plants for processing of leather, six seed plants, six sugar factories, three elevators with storage capacity of 645 thsd tonnes, four silos and 110 flour-storages.
The company will operate 19 poultry farms, three sow farms, nine zones for young cattle rearing, six feed milling plants, three storehouses of long-term egg storage, egg processing plants Imperovo Foods.
