Kernel-Linked Firm Buys Abromavicius’ Agro-Region, Flagging Largest M&A in Sector Since Invasion

Ukraine’s antitrust regulator, the Antimonopoly Committee of Ukraine, has approved the acquisition of nine agricultural companies from Agro-Region by Cyprus-based Kapenata Limited, a firm linked to Enselco Agro controlled by Kernel founder Andriy Verevsky.

The deal sends a strong signal to the market that large-scale consolidation in Ukraine’s agricultural sector is resuming despite the war. The transaction could serve as a pricing benchmark for future farmland M&A and reflects growing confidence among major players in the sector’s long-term prospects.

Kapenata Limited is authorized to acquire more than 50% stakes in nine limited liability companies: Harna Logistics, AR Ivky, AR Chudniv, AR Khmelnytsky, AR Boryspil, AR Kozelets, AR Liubar, AR Borzna and Bilyi Tsvit.

The regulator published its decision on Jan. 8. 

Market participants estimate the value of the deal at $100-110 million, based on the quality and geographic spread of the land bank, according to Latifundist. Assets in Khmelnytskyi region are considered the most valuable, while land in Chernihiv region is reportedly discounted due to its proximity to the frontline earlier in the war.

This was Kernel’s second attempt to acquire Agro-Region since the start of the full-scale invasion, a source told Latifundist. The parties failed to agree on the price during the first round of negotiations last year.

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What is Agro-Region, owned by Ukraine’s ex-economy minister 

Agro-Region owns around 41,000 hectares across Kyiv, Chernihiv, Zhytomyr and Khmelnytsky regions and specializes in crop farming. 

The majority of its assets are located on Ukraine’s left (eastern) bank of the Dnipro River – but the deal happened anyway despite a closer distance to the front line and Russian air attacks. 

The group includes 11 companies organized into four crop-production clusters. According to Interfax-Ukraine, the company operates two grain elevators with a combined capacity of 125,000 tons. Its annual harvest of grains and oilseeds totals about 200,000 tons. 

Agro-Region is owned by Garna Stockholm Holding AB, with former economy minister Aivaras Abromavicius holding 53.6% and Swedish investor Lars Peter Håkansson holding 44.28%.

Latifundist wrote that Enselco is acquiring Agro-Region in full, including corporate rights, machinery, and grain infrastructure. The assets include about 41,000 hectares of farmland, as well as three grain storage facilities with a total capacity of around 150,000 tons.

Enselco Agro was carved out of Kernel in 2023. Kernel founder Andriy Verevsky is acquiring the Agro-Region agricultural group through his privately owned Enselco structure rather than via the publicly listed Kernel. 

Latifundist wrote that acquiring the asset through a private vehicle allows Verevsky to avoid the regulatory and disclosure constraints associated with Kernel’s listing on the Warsaw Stock Exchange, where the company remains publicly traded despite ongoing delisting attempts.

Enselco Agro currently controls about 134,000 hectares in the Khmelnytsky and Ternopil regions. Kernel’s overall land bank is estimated at 550,000-600,000 hectares – it is the largest privately owned land bank in Ukraine. 

Once completed, the land bank of Enselco Agro would exceed that of Romania’s Agricost – currently the EU’s largest agricultural holding with about 57,000 hectares – by more than nine times, according to estimates by Forbes Ukraine’s analytics team.

Between July 2024 and June 2025, Kernel increased sales by 15% year-on-year to $4.1 billion, while net profit rose 42% to $238 million, despite a 5% decline in oilseed processing volumes to 1.4 million tons, according to Forbes Ukraine.