Note 2: Scope of consolidation
Material subsidiaries
The Consolidated financial statements comprise the assets, liabilities, income and expenses of 261 legal entities. We consider legal entities material when they represent, for at least two subsequent years, more than 5% of either revenue or adjusted operating income or based on qualitative aspects. Material subsidiaries included in the table in this Note are fully owned at year-end 2021.
Legal entity |
Principal place of business/ |
|---|---|
Akzo Nobel Coatings Inc. |
US |
Akzo Nobel Paints (Shanghai) Co Ltd. |
China |
Imperial Chemical Industries Limited |
UK |
Akzo Nobel Decorative Coatings B.V. |
Netherlands |
Akzo Nobel Coatings SPA |
Italy |
Acquisitions
On March 1, 2021, we acquired 100% of the shares of Industrias Titan S.A.U. (Titan Paints) in Spain, for €83 million. The acquisition strengthens our paints business and footprint in Spain. The transaction included three production facilities and seven logistics and service centres for decorative paints. Titan Paints generated revenues of around €80 million in 2020. The transaction resulted in €15 million of goodwill (non-deductible for tax purposes), €20 million of other intangible assets and €47 million of property, plant and equipment. The goodwill is mainly attributable to synergies expected to be achieved from integrating the company into the group.
On June 29, 2021, AkzoNobel announced to further expand its long-term position in South and Central America after reaching an agreement to acquire 100% of the Colombia-based paints and coatings company Grupo Orbis, with consolidated revenues of approximately €260 million (in 2020). Completion is subject to regulatory approvals and is expected in the first quarter of 2022.
In € millions |
Titan S.A.U. |
Other* |
Total 2021 |
||
|---|---|---|---|---|---|
Other intangibles |
20 |
(1) |
19 |
||
Property. plant and equipment |
47 |
— |
47 |
||
Inventories |
19 |
— |
19 |
||
Trade and other receivables |
15 |
— |
15 |
||
Cash and cash equivalents |
10 |
— |
10 |
||
Long-term debt |
(1) |
— |
(1) |
||
Provisions |
(2) |
— |
(2) |
||
Deferred tax assets/(liabilities) |
(7) |
— |
(7) |
||
Trade and other payables |
(33) |
— |
(33) |
||
Net identifiable assets and liabilities |
68 |
(1) |
67 |
||
Goodwill |
15 |
2 |
17 |
||
Purchase consideration |
83 |
1 |
84 |
||
Cash and cash equivalents acquired |
(10) |
— |
(10) |
||
To be paid in 2022 and later years |
— |
(1) |
(1) |
||
Net cash outflow |
73 |
— |
73 |
||
|
|||||
Divestments
In 2021 and 2020, no significant divestments occurred.
Operating income is defined in accordance with IFRS and includes the relevant identified items. Adjusted operating income excludes identified items.