Anti-Monopoly Committee announced on March 17 that it has granted permission to leading
Ukrainian sunflower oil producer Kernel (KER PW, KER PW) to purchase 10 farms located in
central Ukraine from Swiss international commodity trader Glencore (GLEN LN).
officials talked about their firm's plans to expand its land bank by 150,000 ha and
negotiations on the possible purchase of assets of Ukrainian agricultural holding Mriya.
Kernel’s current land bank amounts to about 385,000 ha.
Zholonkivskyi: We estimate
that Kernel’s land bank will increase by about 60,000 ha once the purchase is finalized.
This can potentially add up to USD 20 mln to EBITDA (its FY2016 EBITDA stood at USD 358
mln). The boosted land bank is positive for Kernel, but it was expected and has been
probably mostly discounted by the market.
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