Events after the balance sheet date
On 29 January 2019, DSM announced the intention to set up a company together with Nenter & Co. Inc. in China. DSM will acquire a 75% majority shareholding in this company for a cash consideration of about €135 million, which will include all Nenter's production and related assets for Vitamin E. The company will exclusively produce Vitamin E for DSM subject to existing supply agreements of Nenter, and there will be a profit share agreement in place between DSM and Nenter. The transaction is subject to several regulatory approvals and expected to close in the second or third quarter of 2019. As of the date of gaining control, DSM will consolidate the entity.
On 4 February 2019, DSM agreed with the shareholders to increase its shareholding in Yantai Andre Pectin Co., Ltd. (China) from 28.95% to 75% for a consideration of about €150 million. The remaining 25% of the shares in Yantai Andre Pectin continues to be held by the Shandong Andre Group. Andre Pectin is a leading specialty food ingredient producer. The company sales are about €65 million with an EBITDA margin above 25%. DSM will consolidate the activities of Yantai Andre Pectin in its group results. The transaction is expected to close in the first half of the year 2019.