3. Acquisitions and Divestitures
The content of this section is not part of the statutory audit of the annual financial statements but has undergone a separate limited assurance by our auditor.
The content of this section is voluntary, unaudited information, which was critically read by the auditor.
Acquisitions
In 2024, BASF acquired the following activities:
- On July 31, 2023, BASF and Huntsman, together with their Chinese partner companies, announced the separation of their joint MDI production in the associated company Shanghai Lianheng Isocyanate Co., Ltd. BASF took over one of the two MDI plants, including production plants for the precursors aniline and nitrobenzene as well as the employees in production. The transaction falls within the scope of IFRS 3 and was completed on January 31, 2024. The purchase price was €192 million and was cash-effective in full. It is attributable to the acquired plants and, to a lesser extent, to inventories.
- Furthermore, BASF acquired 49% of shares of a shareholding in Vattenfall’s Nordlicht 1 and 2 wind farm projects on April 22, 2024. The acquired assets do not constitute a business according to IFRS 3.2b. The transaction is therefore not being reported as an acquisition and is not included in the following table. The acquired shares are accounted for using the equity method. The purchase price was €501 million and was cash-effective in full.
No material activities were acquired in 2023.
The compensation component agreed as part of the establishment of BASF Shanshan Battery Materials Co., Ltd., Changsha, China, in 2021 was realized in the amount of €18 million in 2023.
A purchase price adjustment for the polyamide business acquired in 2020 led to a payment of €5 million in 2023.
The following overview shows the effects of the acquisitions in 2024 and 2023 on the Consolidated Financial Statements. When acquisitions resulted in the transfer of assets or the assumption of additional liabilities, the effects are shown as net amounts.
|
2024 |
2023 |
||||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|
|
Million € |
%a |
Million € |
%a |
||||||||
Goodwill |
0 |
0.0 |
– |
– |
||||||||
Other intangible assets |
1 |
0.0 |
– |
– |
||||||||
Property, plant and equipment |
188 |
0.7 |
– |
– |
||||||||
Financial assets |
– |
– |
– |
– |
||||||||
Other noncurrent assets |
– |
– |
– |
– |
||||||||
Noncurrent assets |
188 |
0.4 |
– |
– |
||||||||
Current assets |
16 |
0.1 |
–18 |
–0.1 |
||||||||
of which cash and cash equivalents |
– |
– |
– |
– |
||||||||
Assets |
205 |
0.3 |
–18 |
–0.0 |
||||||||
|
|
|
|
|
||||||||
|
|
|
|
|
||||||||
Equity |
– |
– |
–18 |
–0.1 |
||||||||
of which noncontrolling interests |
– |
– |
– |
– |
||||||||
Noncurrent liabilities |
– |
– |
– |
– |
||||||||
of which financial indebtedness |
– |
– |
– |
– |
||||||||
Current liabilities |
3 |
0.0 |
–5 |
–0.0 |
||||||||
of which financial indebtedness |
– |
– |
– |
– |
||||||||
Total equity and liabilities |
3 |
0.0 |
–23 |
–0.0 |
||||||||
Payments made for acquisitions |
202 |
|
5 |
|
||||||||
Additions of cash and cash equivalents |
– |
|
– |
|
||||||||
Payments made for acquisitions according to statement of cash flows |
202 |
|
5 |
|
||||||||
|
||||||||||||
Divestitures
In 2024, BASF sold the following activity:
- On September 3, 2024, BASF completed the sale of the exploration and production business (E&P business) of the Wintershall Dea AG oil and gas company (Wintershall Dea GmbH as of September
23, 2024), Kassel/Hamburg, Germany, to Harbour Energy plc, London, United Kingdom. The E&P business includes assets used in production and development, exploration rights and Wintershall Dea’s carbon storage licenses. In exchange, Wintershall Dea shareholders – BASF (72.7%) and LetterOne (27.3%) – received a cash consideration totaling $1.78 billion (BASF share: $1.29 billion), including a purchase price adjustment, and new shares issued by Harbour equating to a total shareholding of 54.5% in the expanded Harbour company (BASF share: 39.6%). The non-integral investment in Harbour Energy, accounted for using the equity method, was initially recognized at the closing price of the shares on September 3, 2024, plus directly attributable incidental acquisition costs. Wintershall Dea’s headquarters, which are scheduled to be closed, its employees as well as the Russia-related business, for which significant federal guarantees exist, were not part of the transaction. The equity method for the shares in Wintershall Dea will be continued accordingly. Income from the sale of the E&P business to Harbour is reported in income from non-integral companies accounted for using the equity method. The disposal gain is summarized in the following table:
Million € |
Sep. 3, 2024 |
|---|---|
Cash payment received/shares in Harbour Energy plc and directly attributable |
3,466 |
Disposed net assets |
–2,956 |
Other income and expenses related to the divestiture |
–120 |
Disposal gain before taxes |
390 |
Disposal gain after taxes |
386 |
In 2023, BASF sold the following activity:
- On August 31, 2023, BASF completed the sale of its production site in De Meern, Netherlands, to IQatalyst B.V., Luxembourg, a subsidiary of ASC Investment Sarl, Luxembourg. The transaction mainly covered facilities for the production of nickel-based catalysts, including the associated infrastructure and inventories. The production site was part of the Catalysts division. The purchase price was €13 million, and the after-tax disposal loss was €4 million.
The following overview shows the effects of the divestitures in 2024 and 2023 on the Consolidated Financial Statements. The sales line item shows the year-on-year decline resulting from divestitures. The impact on equity related mainly to gains and losses from divestitures. Payments received from divestitures amounted to €1,244 million and mainly related to the Wintershall Dea transaction (€1,169 million), as well as various smaller transactions and a purchase price adjustment for a transaction from previous years.
|
2024 |
2023 |
||||||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
|
Million € |
%a |
Million € |
%a |
||||||||||
Sales |
–86 |
–0.1 |
–212 |
–0.2 |
||||||||||
|
|
|
|
|
||||||||||
|
|
|
|
|
||||||||||
Noncurrent assets |
–683 |
–1.4 |
–30 |
–0.1 |
||||||||||
of which property, plant and equipment |
–12 |
0.0 |
–21 |
–0.1 |
||||||||||
Current assets |
–25 |
–0.1 |
–12 |
–0.0 |
||||||||||
of which cash and cash equivalents |
– |
– |
– |
– |
||||||||||
Assets |
–708 |
–0.9 |
–42 |
–0.1 |
||||||||||
|
|
|
|
|
||||||||||
|
|
|
|
|
||||||||||
Equity |
496 |
1.3 |
–8 |
–0.0 |
||||||||||
Noncurrent liabilities |
–2 |
0.0 |
–1 |
–0.0 |
||||||||||
of which financial indebtedness |
– |
– |
– |
– |
||||||||||
Current liabilities |
41 |
0.2 |
–1 |
–0.0 |
||||||||||
of which financial indebtedness |
– |
– |
– |
– |
||||||||||
Total equity and liabilities |
536 |
0.7 |
–9 |
–0.0 |
||||||||||
Payments received from divestitures |
1,244 |
|
32 |
|
||||||||||
Further effects in connection with divestituresb |
–1,169 |
|
– |
|
||||||||||
Payments received from divestitures according to statement of cash flows |
75 |
|
32 |
|
||||||||||
|
||||||||||||||
Agreed transactions and groups of assets and liabilities held for sale (disposal groups)
- On December 21, 2024, BASF signed a binding agreement to sell its Food and Health Performance Ingredients business in the Nutrition & Care segment, including the production site in Illertissen, Germany, to Louis Dreyfus Company (LDC), Rotterdam, Netherlands. As part of the agreement, approximately 300 BASF employees are expected to transfer to LDC as of the closing of the transaction. Both parties have agreed not to disclose the financial details of the transaction. As of the agreement on the sale, the affected assets and liabilities were reclassified to a disposal group. The cumulative remeasurement effects of defined benefit plans attributable to the disposal group as of December 31, 2024, recognized in other comprehensive income amounted to –€4 million.
Million € |
Dec. 31, 2024 |
|---|---|
Balance sheet |
|
Goodwill |
–5 |
Other intangible assets |
–20 |
Property, plant and equipment |
–48 |
Integral investments accounted for using the equity method |
– |
Non-integral investments accounted for using the equity method |
– |
Other financial assets |
– |
Deferred tax assets |
–1 |
Receivables for income taxes |
– |
Other receivables and miscellaneous assets |
–1 |
Noncurrent assets |
–75 |
Inventories |
–46 |
Accounts receivable, trade |
0 |
Receivables for income taxes |
– |
Other receivables and miscellaneous assets |
0 |
Marketable securities |
– |
Cash and cash equivalents |
– |
Current assets |
–46 |
Assets of the disposal group |
121 |
Provisions for pensions and similar obligations |
–22 |
Deferred tax liabilities |
–3 |
Income tax provisions |
– |
Other provisions |
0 |
Financial indebtedness |
– |
Other liabilities |
– |
Noncurrent liabilities |
–25 |
Accounts payable, trade |
– |
Provisions |
0 |
Liabilities for income taxes |
– |
Financial indebtedness |
– |
Other liabilities |
– |
Current liabilities |
– |
Liabilities of the disposal group |
25 |
Net assets |
96 |
- On December 31, 2024, BASF signed a memorandum of understanding followed by an agreement on February 7, 2025, to divest its shares in BASF Markor Chemical Manufacturing (Xinjiang) Co., Ltd. and Markor Meiou Chemical (Xinjiang) Co., Ltd. in Korla, China. The companies operate production plants for butanediol and PolyTHF in the Chemicals segment. Upon completion of the agreement, the affected assets and liabilities were reclassified to a disposal group. The disposal proceeds are expected to be below the carrying amount of net assets, so an impairment of €24 million was recorded upon classifying this business as held for sale. The cumulative gains from currency translation recognized in other comprehensive income attributable to the disposal group as of December 31, 2024, amounted to €4 million.
Million € |
Dec. 31, 2024 |
|---|---|
Balance sheet |
|
Goodwill |
– |
Other intangible assets |
– |
Property, plant and equipment |
–20 |
Integral investments accounted for using the equity method |
–16 |
Non-integral investments accounted for using the equity method |
– |
Other financial assets |
– |
Deferred tax assets |
–2 |
Receivables for income taxes |
– |
Other receivables and miscellaneous assets |
–9 |
Noncurrent assets |
–47 |
Inventories |
–6 |
Accounts receivable, trade |
0 |
Receivables for income taxes |
– |
Other receivables and miscellaneous assets |
0 |
Marketable securities |
– |
Cash and cash equivalents |
–7 |
Current assets |
–13 |
Assets of the disposal group |
60 |
Provisions for pensions and similar obligations |
– |
Deferred tax liabilities |
–1 |
Income tax provisions |
– |
Other provisions |
– |
Financial indebtedness |
– |
Other liabilities |
–7 |
Noncurrent liabilities |
–8 |
Accounts payable, trade |
–5 |
Provisions |
0 |
Liabilities for income taxes |
0 |
Financial indebtedness |
– |
Other liabilities |
–1 |
Current liabilities |
–6 |
Liabilities of the disposal group |
14 |
Net assets |
46 |
This content fulfills the Disclosure Requirements of the European Sustainability Reporting Standards (ESRS). The ESRS Index gives an overview of the references to the ESRSs in this report.