Significant Events

As part of the implementation of BASF’s corporate strategy, the operating divisions, cross-functional service units, the regions and a lean Corporate Center have formed the cornerstones of the new BASF organization since January 1, 2020. This organizational realignment has created the conditions for greater customer proximity, increased competitiveness and profitable growth. We are streamlining our administration and simplifying procedures and processes as part of our ongoing Excellence Program. In addition, we are sharpening the roles of service units and regions.

Some of the investments accounted for using the equity method are not an integral part of the BASF Group. These include, in particular, the shares in Wintershall Dea GmbH, Kassel/Hamburg, Germany, and Solenis UK International Ltd., London, United Kingdom. To increase reporting transparency, these will be classified in the future as purely financial investments and reported separately from the shareholdings that are integral to the main business activities of the BASF Group. One material equity-accounted interest that has been classified as integral is BASF-YPC Company Ltd., Nanjing, China. Consequently, in the future, income from non-integral companies accounted for using the equity method will no longer be presented in the BASF Group’s EBIT and EBIT before special items, but under net income from shareholdings. Due to its increased significance, this will be presented as a separate subtotal within income before income taxes and is no longer part of the financial result. Integral and non-integral investments accounted for using the equity method will also be shown separately in the balance sheet. The statement of income for 2019 has been restated accordingly.

On January 31, 2020, BASF closed the acquisition of Solvay’s integrated polyamide business, which was announced in September 2017. The acquisition broadens BASF’s polyamide capabilities with innovative and well-known products such as Technyl^® and enhances access to growth markets in Asia as well as in North and South America. Through the backward integration into the key raw material adiponitrile (ADN), BASF now has production plants along the entire value chain for polyamide 6.6. The transaction includes production sites in Germany, France, China, India, South Korea, Brazil and Mexico; research and development centers and technical consultation centers; and shares in Butachimie SNC, a joint operation with Invista to produce ADN and hexamethylenediamine (HMD), and in Alsachimie S.A.S., a joint operation between BASF and Domo Chemicals to produce adipic acid. BASF acquired the polyamide business for a purchase price of €1.3 billion (on a cash and debt-free basis) and will integrate it into the Performance Materials and Monomers divisions within the Materials segment.

In light of the global spread of the coronavirus, BASF has activated crisis teams at the Group’s headquarters and in all regions in accordance with its pandemic preparedness plan. This approach allows BASF to coordinate all measures for employees, customers and partners and take into account the often very different situations at different locations. The health of our employees and supplying our customers in the best possible way have the utmost priority. We expect the effects of the pandemic to significantly burden earnings in the 2020 fiscal year.

The company’s Annual Shareholders’ Meeting cannot be held as planned in Mannheim on April 30, 2020, due to the restrictions resulting from the spread of the coronavirus in Germany. Instead, BASF will conduct it on June 18, 2020, as an entirely virtual shareholders’ meeting without the presence of shareholders. The virtual format, which has been made possible for this year by German legislation, will allow BASF’s Annual Shareholders’ Meeting to take place within the statutory period of six months after the end of the fiscal year, as required by law for companies with the legal form of a Societas Europaea (SE). Further details will be included in the invitation to BASF’s Annual Shareholders’ Meeting that is to be published in the electronic Federal Gazette on May 22, 2020, at the latest.