The Antimonopoly Committee of Ukraine has granted permission to the agro-industrial company Kernel to acquire shares of Industrial Dairy Company (IMC) within the next 12 months. This decision opens up a legal opportunity for Kernel to complete a deal that will potentially change the balance of power in the Ukrainian agricultural market.

As Delo.ua reports with reference to the regulator's press service, the AMCU has agreed that Kernel Holding S.A. (Luxembourg) will gain control over another Luxembourg agro-holding, IMC S.A. Under the terms, a special shareholder agreement is to be signed between Kernel Holding S.A., Agrovalley Limited and IMC S.A., which will allow Kernel to influence key management decisions of the target company.

Despite the fact that negotiations between Kernel and IMC are currently suspended, the company has not withdrawn its application from the AMCU. This means that it retains the right to implement the planned merger within a year, as soon as the parties reach an agreement.

It is worth noting that both companies are important players in the agricultural sector of Ukraine. Kernel is one of the largest exporters of oil and grains, and IMC owns a significant land bank and specializes in growing grain crops, as well as livestock. If the deal is implemented, Kernel will significantly strengthen its market position.

Formal approval from the antimonopoly authority is a necessary stage for such mergers and acquisitions in order to avoid excessive concentration of economic influence. In this case, the AMCU concluded that the deal will not violate competition in the relevant markets.

Further developments will depend on the decisions of the companies themselves, as well as the market situation. However, permission has been granted, and this gives Kernel room for strategic maneuver over the next year.