The purchasing the right of the agricultural land use at mergers and acquisitions in agribusiness

Abstract

In the article, the author considers the current state of the market of agricultural use rights in Ukraine and defines the main factors that influence the slowdown of market development. Today in fact there is a market of agricultural use rights, which is developing a limited legal framework, is gray. This leads to the fact that owners of may not know who are the actual users of their land. Nevertheless users trying to act within the legal framework so without violating the law. In the article, the author leads the main ways of acquiring the right of agricultural use at mergers and acquisitions in agribusiness. Agreement of mergers and acquisitions in agribusiness have their own characteristics and significantly different from concluding similar agreements in other areas of business. Often, agricultural enterprises, such as agroholdings, are interested in increasing the amount of cultivated agricultural land, so they conclude mergers and acquisitions agreements, acquiring rights to other agricultural enterprises, as well as their real estate, production facilities, agricultural and rights to it. Mergers and acquisitions in agribusiness is through contracts of sale of or corporate rights or single property complex. In order to create the conditions for the development of the market in Ukraine, the author substantiates the necessity of legislative regulation of the possibility of selling the right of agricultural use. According to the author, the pluralism of the ways of acquiring the right of agricultural use will enable users to choose the most appropriate option for consolidation of and increase the land bank by law, also facilitate out of the shadows of relations in agricultural use.