Change

Note 2 Acquisitions and divestments


In 2009, we completed several acquisitions and divestments:

  • In Decorative Paints, we acquired two distributors in Continental Europe.
  • In Performance Coatings, we divested Chemcraft Brazil and the non-stick businesses. We completed the acquisitions of SABA and Kronospan and we announced the acquisition of the Dow Powder Coatings assets. This business has global revenue of several hundred million dollars and employs around 700 employees. It will further strengthen the Powder business in Europe and North America and will bring key technological know-how and significant synergy potential. The transaction is expected to close during the second quarter of 2010, subject to customary closing conditions, including regulatory approvals.
  • In Specialty Chemicals we acquired LII Europe and Penford Australia and additional interests in joint ventures. We divested PTA Pakistan.

The acquisitions in 2009, both individually and in total, were deemed immaterial in respect of the IFRS 3 disclosure requirements. Pre-acquisition carrying amounts were not gathered.

Aggregated recognized values of acquisitions in 2009

 

 

 

In € millions

Recognized values at acquisition

 

 

 

Goodwill

 

33

Other intangible assets

 

61

Property, plant and equipment

 

53

Investments in associates and joint ventures

 

(20)

Other non-current assets

 

1

Inventories

 

29

Trade and other receivables

 

29

Cash and cash equivalents

 

4

Provisions

 

(13)

Deferred tax liabilities

 

(12)

Long-term borrowings

 

(17)

Trade and other payables

 

(34)

Net identifiable assets and liabilities

 

114

 

 

 

Minority interests

 

(6)

Revaluation of former investments in step acquisitions

(7)

Recognized in the statement of income

 

(10)

 

 

 

Consideration paid

 

91

 

 

 

Cash and cash equivalents acquired

 

(4)

To be paid in 2010 and later years

 

(9)

 

 

 

Net cash outflow

 

78

On January 2, 2008, we acquired 100 percent of the share capital of Imperial Chemical Industries plc (ICI). The total cost of the acquisition, paid mostly in cash, was €11.6 billion. ICI was one of the world’s leading coatings, adhesives, starches and synthetic polymer businesses, with products and ingredients developed for a wide range of markets. It had operations in more than 50 countries around the world and its customers are spread across a diverse range of product sectors.

Acquisition of ICI

 

 

 

In € millions

Pre-acquisition carrying amounts

Recognized values at acquisition

 

 

 

Goodwill

413

4,465

Other intangible assets

61

3,763

Property, plant and equipment

1,135

1,382

Other non-current assets

545

513

Inventories

568

622

Trade and other receivables

977

979

Assets held for sale

1,200

4,413

Cash and cash equivalents

1,088

1,088

Provisions

(1,271)

(1,402)

Deferred tax liabilities

(21)

(884)

Long-term borrowings

(372)

(372)

Trade and other payables

(1,915)

(1,940)

Liabilities held for sale

(554)

(581)

Net identifiable assets and liabilities

1,854

12,046

 

 

 

Minority interests

 

(435)

 

 

 

Consideration paid

 

11,611

In connection with the acquisition of ICI, we sold all assets and liabilities comprising the businesses known within ICI as the Adhesives business and the Electronic Materials business to Henkel, for €3.6 billion. The transaction took place in April 2008.

In addition, in granting clearance, the EU and Canadian authorities accepted a commitment package from AkzoNobel involving the divestment of a number of AkzoNobel Decorative Paints businesses in the UK, Ireland, Belgium and Canada. These businesses were sold in the course of 2008.

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