2.1 – Changes in Scope of Consolidation

In 2019, a total of 302 companies were included, either proportionally or fully, in the scope of consolidation for the Consolidated Financial Statements (2018: 331). Of these, seven companies were first-time consolidations (2018: 42). Since the beginning of 2019, a total of 36 companies (2018: five) were deconsolidated due to divestiture, merger, liquidation or immateriality.

First-time consolidations in 2019 comprised:

  • One acquired company with headquarters in Europe
  • One newly established company with headquarters in Asia Pacific
  • Five companies with headquarters in Europe (three, two of those are in Germany) and in Asia Pacific (two) that had not been consolidated at the time of initial inclusion in the Consolidated Financial Statements.

First-time consolidations in 2018 comprised:

  • 22 acquired companies with headquarters in Europe (11; one of those is in Germany), North America (two), Asia Pacific (three) and South America, Africa, Middle East (six)
  • Three newly established companies with headquarters in Europe (two; none of those is in Germany) and Asia Pacific (one)
  • 17 companies that had not been consolidated at the time of initial inclusion in the Consolidated Financial Statements in Europe (five; two of those are in Germany), North America (eight), Asia Pacific (two), South America, Africa, Middle East (two).

Of the 42 companies that were consolidated in the Consolidated Financial Statements for the first time in 2018, 35 companies were included for the first time due to the acquisition of significant parts of Bayer’s seed and non-selective herbicide business (13) and its vegetable seeds business (22) as acquired, new or previously nonconsolidated entities. As a result of the the integration of the seed and non-selective herbicide business in 2019, 11 new entities from 2018 were deconsolidated due to mergers with BASF companies or reduced materiality.

Although BASF does not hold the majority of shares in ZAO Gazprom YRGM Trading, BASF was entitled to the earnings of the company due to profit distribution arrangements. As a result, the company was fully consolidated in the Consolidated Financial Statements until April 30, 2019. 18 companies including ZAO Gazprom YRGM Trading were deconsolidated due to the merger of Wintershall and DEA for the Wintershall Dea joint venture.

A list of the companies included in the Consolidated Financial Statements and a list of all companies in which BASF SE has a shareholding as required by section 313(2) of the German Commercial Code (HGB) is provided in the list of shares held.

For more information, see Note 3
For more information, see basf.com/en/corporategovernance

(XLS:) XLS

Scope of consolidation

 

Europe

Of which Germany

North America

Asia Pacific

South America, Africa, Middle East

2019

2018

As of January 1

170

59

52

75

34

331

294

of which proportionally consolidated

6

–

–

2

–

8

8

First-time consolidations

4

2

–

3

–

7

42

of which proportionally consolidated

–

–

–

–

–

–

–

Deconsolidations

22

11

6

4

4

36

5

of which proportionally consolidated

1

–

–

–

–

1

–

As of December 31

152

50

46

74

30

302

331

of which proportionally consolidated

5

–

–

2

–

7

8

(XLS:) XLS

Overview of impact of changes to the scope of consolidation (excluding acquisitions and divestitures)

 

2019

2018

 

Million €

%

Million €

%

Sales

11

0.0

2

0.0

 

 

 

 

 

Noncurrent assets

44

0.1

2

0.0

of which property, plant and equipment

13

0.1

79

0.4

Current assets

(1)

0.0

(8)

0.0

of which cash and cash equivalents

21

0.9

–

–

Assets

43

0.0

(6)

0.0

 

 

 

 

 

Equity

20

0.0

(1)

0.0

Noncurrent liabilities

(1)

0.0

1

0.0

of which financial indebtedness

–

–

–

–

Current liabilities

24

0.1

(6)

0.0

of which financial indebtedness

–

–

–

–

Total equity and liabilities

43

0.0

(6)

0.0

Other financial obligations

–

–

–

–