Mergers of agricultural enterprises in the Czech Republic
Mergers of agricultural enterprises in the Czech Republic

Author(s): Michaela Krejčová, Jana Gláserová, Milena Otavová, Sabina Mašová
Subject(s): Business Economy / Management, Agriculture
Published by: Masarykova univerzita nakladatelství
Keywords: mergers; company transformation; agriculture; efficiency;
Summary/Abstract: One of the conspicuous manifestations of the globalization of economic activities is mutual operations between enterprises whose aim is to achieve a higher valuation of them. These are transformations of companies and cooperatives whose use is steadily rising among businesses. Mergers occur throughout the entire economy, including agriculture. Agriculture is an important component of the economy although its share of gross domestic product shows a decreasing trend. In agriculture, the most common motivation for mergers is the simplification of the structure of a group of companies, as suggested by the study of merger projects. To evaluate the success and efficiency of mergers selected ratios are used and the measured period is three years before and three years after the merger. The study involves agricultural enterprises in the Czech Republic that were merged in the years 2010 – 2012. Also, a relationship between the number of transformations in the form of mergers in agriculture and the development of GDP in the years 2006 – 2016 is examined.

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