10 Associates and joint arrangements
Associates and joint ventures
The following table analyses, in aggregate, the carrying amount and share of profit and other results of associates and joint ventures.
|
|
2021 |
|
2020 |
||||
|---|---|---|---|---|---|---|---|---|
|
|
Associates |
|
Joint ventures |
|
Total |
|
Total |
|
|
|
|
|
|
|
|
|
Balance at 1 January |
|
89 |
|
4 |
|
93 |
|
155 |
|
|
|
|
|
|
|
|
|
- Share of the profit of associates and joint ventures |
|
15 |
|
- |
|
15 |
|
(71) |
- Other comprehensive income |
|
4 |
|
- |
|
4 |
|
(6) |
- Capital payments |
|
2 |
|
3 |
|
5 |
|
8 |
- Dividends received |
|
(9) |
|
(1) |
|
(10) |
|
(1) |
- Acquisitions |
|
- |
|
- |
|
- |
|
1 |
- Consolidation changes |
|
(17) |
|
- |
|
(17) |
|
- |
- Disposals |
|
(34) |
|
- |
|
(34) |
|
- |
- Fair value adjustments |
|
10 |
|
(2) |
|
8 |
|
- |
- Other |
|
(1) |
|
1 |
|
- |
|
7 |
Balance at 31 December |
|
59 |
|
5 |
|
64 |
|
93 |
On 27 July 2021, DSM acquired in a step acquisition the remaining shares of Midori USA, Inc. (see also Note 3 Change in the scope of the consolidation). Before the acquisition, DSM accounted for its 36.5% stake as an associate and applied equity accounting. This previously held equity interest was recognized at a book value of €12 million and was revalued to its fair value of €22 million on acquisition date. The fair value step-up of €10 million was recognized in the income statement in Other results related to associates and joint ventures.
On 15 October 2021, CVC Capital Partners sold its AOC specialty resins business, in which DSM is a minority shareholder, to an affiliate of Lone Star Funds. Before the sale, DSM accounted for its share in AOC as an associate. DSM received an amount of €337 million in cash for its entire shareholding and recognized a book profit of €303 million, which is included under ‘Other results related to associates and joint ventures’ in the income statement.
Joint operations
The operations Veramaris (2017) and Avansya (2019) are accounted for in accordance with IFRS 11 for joint operations. DSM therefore recognizes their amounts for the assets, liabilities, revenues and expenses in accordance with the contractual entitlement and obligations of DSM.