3 – Acquisitions and divestitures
Acquisitions
BASF made the following acquisitions in the first quarter of 2015:
On February 12, 2015, BASF concluded the acquisition of the business from Taiwan Sheen Soon (“TWSS”) in Taiwan, which had been announced on December 8, 2014. TWSS is a leading manufacturer of precursors for adhesives based on thermoplastic polyurethanes. The activities have been integrated in the Performance Materials division. The acquisition of further assets on the Chinese mainland to complete the transaction is dependent on the authorities’ approvals, and is expected in the course of the year.
On February 18, 2015, BASF took over technologies, patents and know-how for silver nanowires from Seashell Technology, based in San Diego, California. Through this acquisition, BASF has extended its product portfolio for displays in the Electronic Materials business unit, which is part of the Monomers division.
As announced on October 30, 2014, BASF acquired on February 24, 2015, from TODA KOGYO CORP., based in Tokyo, Japan, a 66% share in a company to which TODA had contributed its business with cathode materials for lithium-ion batteries, patents and production capacities in Japan. The company will focus on the research, development, production, marketing and sales of a number of cathode materials. In BASF, the activities were assigned to the Catalysts division.
On March 31, 2015, BASF concluded the acquisition announced on July 10, 2014, of the PU business from Polioles, S.A. de C.V., based in Lerma, Mexico. Polioles is a joint venture with the Alpek Group, in which BASF holds a 50% share and which is accounted for using the equity method. The acquisition comprises marketing and selling rights, current assets, and to a minor extent, production facilities. The business was assigned to the Performance Materials division.
The purchase prices for businesses acquired in the first quarter of 2015 totaled €190 million; as of the balance sheet date, payments made amounted to €112 million. The purchase price allocations were carried out in accordance with IFRS 3 and are based on estimates. The resulting goodwill amounted to €18 million. The purchase price allocations should be regarded as preliminary and can be adjusted within one year after the acquisition.
Divestitures
On March 31, 2015, BASF sold its business with white EPS (expandable polystyrene) in North and South America to the Alpek Group. In the United States, Canada, Brazil, and Argentina, the sale comprised customer lists and current assets in addition to production facilities. The disposed activities had been part of BASF’s Performance Materials division. Furthermore, the shares in Aislapol S.A., based in Santiago de Chile, Chile, were sold and the equity-accounted joint venture Polioles transferred its white EPS business to Alpek.