35 – Non-Adjusting Post-Balance Sheet Date Events

On January 31, 2020, BASF acquired Solvay’s polyamide business. As a result of antitrust legal requirements, Domo Chemicals acquired parts of Solvay’s polyamide business, including production plants and innovation competencies in the engineering plastics field in Europe. Following these adjustments to the scope of the transaction, the purchase price on a cash and debt-free basis and excluding other adjustments totaled approximately €1.3 billion. The acquisition includes eight production sites in Germany, France, China, India, South Korea, Brazil and Mexico, as well as research and development and technical consultation centers in Asia and the Americas. BASF plans to integrate the acquired polyamide business from Solvay into the Performance Materials and Monomers divisions.

BASF acquired seven Solvay companies, which are fully consolidated as subsidiaries in BASF’s Consolidated Financial Statements as of the closing date of the transaction. From the closing date of the transaction, BASF has included two companies in its Consolidated Financial Statements as joint operations. Furthermore, BASF acquired Solvay’s assets associated with each business in four countries directly through local BASF companies. At present, it is not yet possible to provide exact data on the transferred assets or debt or on the goodwill resulting from the transaction. As part of the transaction, Solvay’s property, plant and equipment totaling approximately €400 million in value as well as intangible assets, primarily technologies, other rights and customer relationships totaling between €600 million and €700 million were transferred to BASF. The receivables and liabilities considered each amount to approximately €225 million and should more or less offset each other. Debt consists primarily of pension obligations in the mid-double-digit million euro range. Based on pending valuations and analyses, goodwill resulting from the transaction is expected in the low triple-digit million euro range. BASF is financing the acquisition within the scope of its usual financing.

On February 14/15, 2020, a jury in a U.S. Federal District Court awarded $15 million in compensatory damages against defendants Monsanto Company and BASF Corporation after a trial related to alleged yield losses of a peach farmer in connection with the use of the dicamba herbicide. The jury also found that Monsanto was liable for $250 million in punitive damages. Finally, the jury found that the defendants were acting in a joint venture and conspiracy. Following the jury’s decision, the court is considering whether BASF Corporation is also liable for the punitive damages award against Monsanto because of the joint venture finding. BASF intends to use all legal remedies available and will appeal the decision as to compensatory damages and, if applicable, punitive damages.