BASF Report 2021 Consoli dated Financial Statements – Notes 207 3 Acquisitions and divestitures suitable for forecasting future developments or events. The Preliminary purchase price allocation for the acquisition of assets and goodwill is not tax deductible. liabilities of the BASF Shanshan companies Acquisitions Million € Fair value as of The following table shows the fair values for the assets and liabilities date of In 2021, BASF acquired the following activity: of the BASF Shanshan companies, which were used on a pr eliminary acquisition – Since August 31, 2021, BASF and Shanshan, a lithium-ion battery basis until a complete independent valuation is carried out. The Goodwill 254 materials provider in China, have held shares in BASF Shanshan purchase price allocation considers all the facts and circumstances Other intangible assets 139 Battery Materials Co., Ltd. The company is majority-owned by prevailing as of the date of acquisition that were known prior to the Property, plant and equipment 332 BASF (BASF 51%; Shanshan 49%). It already occupies a very preparation of these financial statements. If further facts and Integral investments accounted for using the equity method – strong position in the value chain for battery materials including circumstances become known within the 12-month valuation period Non-integral investments accounted for using the equity method – Other financial assets 8 raw materials, precursors for cathode active materials, cathode pursuant to IFRS 3, the purchase price allocation will be recalculated Deferred tax assets 11 active materials and battery recycling. It focuses primarily on the accordingly. Other receivables and miscellaneous assets – electric vehicle market as well as the consumer electronics and Noncurrent assets 744 energy storage segments. Through this investment, BASF is The gross amounts of contractual trade accounts receivable were Inventories 207 further strengthening its position in Asia to create an integrated €290 million, of which €52 million is expected to be uncollectible. Accounts receivable, trade 238 global supply chain for battery materials for customers in China The gross amounts of Other receivables were €160 million. Other receivables and miscellaneous assets 160 and worldwide. The investment strengthens the Catalysts division. Marketable securities – The transaction includes four companies and approximately Cash and cash equivalents 52 1,600 employees. One of the companies is classified as an Current assets 657 investment accounted for using the equity method, but for Total assets 1,401 reasons of materiality, was consolidated in BASF’s financial statements at amortized cost. The purchase price was €616 mil- Provisions for pensions and similar obligations – lion and was cash-effective in full. A separate transaction valued Deferred tax liabilities 32 at €36 million was connected to the purchase in accordance with Tax provisions 2 IFRS 3.51 and was reported under other receivables. It contains a Other provisions 18 compensation component which is coupled with employees Financial indebtedness 5 remaining at BASF Shanshan Battery Materials Co., Ltd. It affects Other liabilities 8 a period of one to two years and will be disbursed in two tranches. Noncurrent liabilities 65 Goodwill of €254 million resulted in particular from sales and cost Accounts payable, trade 262 synergies. The businesses acquired accounted for €354 million in Provisions 2 sales revenue and –€36 million in income from operations in the Tax liabilities 1 2021 fiscal year. Including the businesses and assets of the BASF Financial indebtedness 91 Shanshan companies in BASF’s Consolidated Financial State- Other liabilities 15 ments since January 1, 2021, would have resulted in a sales Current liabilities 371 revenue contribution of €821 million and income from operations Total liabilities 436 of €13 million. These pro forma data are for comparison purposes. Noncontrolling interests 348 They are not necessarily values that would have resulted had the Total purchase price 616 transaction taken place as of January 1, 2021, and are not