Tag Archives: acquisition
Extension Of Moratorium On Acquisition Of Farmland By Foreigners As Impossible As Inefficient
22 October 2013 | 02:03 | FOCUS News Agency Home / European Union Sofia. Protesters in front of the Agriculture Ministry insisted for an extension of the ban on the acquisition of farmland by foreigners. This is also the “solution” to the problem that Bulgarian politicians came up with, even though it is as impossible as inefficient, the Sega daily comments. Other Eastern European countries agreed such moratoriums at their EU accession. The motive was that the price of agricultural land was very low there and foreigners could easily “snatch it from under the nose” of the needy local citizens. However, prices in Bulgaria are still low. The average price per decare is €440 in Bulgaria compared to €1,430 in Italy and €2,930 in the Netherlands. Weeks prior to the end of the moratorium the Agriculture Ministry sent a letter to the European Commission (EC) asking for an extension. The EC promised to answer within a month. Its response is, however, clear in advance – according to Bulgaria’s EU membership treaty it must lift the ban in 2014. The EC will also probably remind Bulgaria of the report it sent in 2010 containing recommendations for safeguard measures it could undertake. They are no different from what other EU member states did. For example, Spain has limited foreign stakes in the land belonging to one village to 15%. Greece introduced restrictions for the acquisition of farmland in border regions, Sega daily comments further. The Sega daily also reported that the EU has turned down a request by Romania to extend the ban on the sale of farmland to foreigners, quoting ITAR-TASS. The moratorium on the sale of farmland to foreign physical persons is virtually formal, as they can always register as juridical persons, the Duma daily comments. According to most experts the expiration of the ban will not produce a considerable effect as since Bulgaria’s EU accession foreigners received the right to buy land under the condition of setting up a joint-stock company with capital of BGN 2. Foreign investments in agricultural land in Bulgaria amount to below 0.2% for the past seven years since its EU entry, according to data from the latest report of the World Bank, as cited by the Institute for Market Economics. Experts note the reason behind the scepticism of foreign investors is the confusion with land management in Bulgaria. Continue reading
Greenergy To Tap Chinese Biomass Sector With Acquisition, 15 New Plants
Published 24 May 2013 Renewable energy company Greenergy Holdings is outlining extensive expansion plans by launching a line of biomass facilities in China by the third quarter of 2013. The company is keen to boost its capacity by developing 15 biomass plants in Heilongjiang province. Confirming the expansion plans, Greenergy president and CEO Antonio Tiu told the Inquirer that the company’s first project planned in China would have a capacity of 4MW. The company is gearing up to acquire a majority stake in Zhongshe Renewable Energy that owns four biomass facilities, each having 1MW capacity, added Tiu. “We recently signed the term sheet and are now conducting due diligence,” revealed Tiu, suggesting that the deal would close by the third quarter. Upon closing this acquisition deal, the company is planning to take up development of biomass plants in collaboration with the Heilongjiang Beidahuang Seed Group. Beidahuang will provide rice hull as feedstock to the plants from its farming business, as a part of partnership. Continue reading
