Note 2: Scope of consolidation

Acquisition of BASF’s Industrial Coatings business

On December 14, 2016, we acquired BASF’s Industrial Coatings business. The transaction included two manufacturing plants, technologies, patents and trademarks, as well as securing supply to customers worldwide. The business supplies products for a number of end uses, including coil, furniture foil and panel coatings, wind energy and general industry, and commercial transport. The acquisition strengthened our position in the important coil coatings market and fits well with our existing business, allowing us to offer essential solutions to our customers.

The goodwill is attributable to the expected synergies of combining the BASF’s Industrial Coatings business with our existing business. The total amount of goodwill that is expected to be deductible for tax purposes is €164 million.

As a result of the closing date of December 14, 2016, the revenue and operating income contribution of the acquired business was insignificant. As the purchase price allocation is provisional it was deemed impracticable to disclose information on the consolidated pro-forma revenue and operating income for 2016 as if the acquisition had occurred on January 1, 2016.

Acquisition related costs of €13 million are included in Other results in the statement of income and in the Net cash from operating activities in the statement of cash flows.

Other acquisitions

Other acquisitions are deemed to be individually immaterial. Other acquisitions include the acquisition of the remaining 50 percent stake in EkO Peroxide LLC in January 2016, which mainly impacted the statement of income on the line Results from associates and joint ventures. EkO Peroxide LLC was treated as consolidated company thereafter.

In March 2015, we obtained the remaining 50 percent stake in Delesto B.V., which was treated as consolidated company thereafter.

Divestments

In 2016, no significant divestments occurred.

Discontinued operations

The results and net cash out from operating activities both in 2015 and 2016 mainly relate to settlements for previously divested businesses.

Material subsidiaries

The Consolidated financial statements comprise the assets, liabilities, income and expenses of approximately 360 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) or based on qualitative aspects. Material subsidiaries included in the table are 100 percent owned and meet these criteria.