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Don Agro takes over rival Rav Agro Rost for $2.7 mil

Jeffrey Tan
Jeffrey Tan • 2 min read
Don Agro takes over rival Rav Agro Rost for $2.7 mil
The potential synergies from this acquisition include better procurement terms due to economies of scale, says Don Agro.
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Don Agro International has acquired rival company Rav Agro Rost for about $2.7 million.

This comes after the Russian wheat and milk producer signed a sale and purchase agreement on July 9.

The transaction was paid using internal funds.

Rav Agro Rost is an agricultural company that focuses on both crop and milk production.

It owns a landbank of about 10,131.3 acres and 177 dairy cows.

The acquisition has expanded Don Agro’s total landbank by 6.5% to 166,400.8 acres.

According to Don Agro, the acquisition is expected to yield operational synergies as Rav Agro Rost’s landbanks have common borders with its main operating division in the Millerovo District.

Moreover, Rav Agro Rost’s dairy segment sells its milk to the same milk processing customer of the company.

Overall, the potential synergies from this acquisition include better procurement terms due to economies of scale, adds Don Agro.

“Our latest acquisition of Rav Agro Rost is in line with our strategic direction to grow our controlled landbank, such that we are able to meet the increasing global demand for agricultural and dairy products and ultimately capture growth in new markets,” Don Agro CEO Marat Devlet-Kildeyev says in a July 28 statement.

On July 28, Don Agro ended down 0.5 cent or 1.2% at 40 cents with 5.2 million shares changed hands.

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