Note 2: Scope of consolidation

In 2014, Decorative Paints completed the divestment of the German stores. Specialty Chemicals announced the intended sale of its Paper Chemicals portfolio for €153 million. The transaction is expected to be completed in 2015, subject to regular consultation with employee representatives and satisfaction of closing conditions such as receipt of required regulatory clearances. This business is currently part of Pulp and Performance Chemicals and is accounted for as held for sale. Businesses that no longer qualify as held for sale have been reclassified to ongoing operations.

No acquisition in 2014, individually nor in total, was deemed material in respect of IFRS 3 disclosure requirements.

During 2013, we concluded the divestment of Building Adhesives in Decorative Paints and some smaller divestments, such as the Primary Amides and Purate businesses in Specialty Chemicals.

Discontinued operations

During 2013, the divestment of the North American Decorative Paints business was completed and resulted in €779 million net cash inflows and a transaction gain after tax of €141 million, both reported in discontinued operations. The net cash from operating activities in 2014 mainly relates to a settlement for a case following the divestment of Organon BioSciences in 2007.

Material subsidiaries

The Consolidated financial statements comprise the assets and liabilities of approximately 400 legal entities. We consider legal entities material when they represent, for at least two subsequent years, more than 5 percent of either revenue or operating income (before incidentals). Material subsidiaries included in the table are 100 percent owned and meet these criteria.