Scope of Consolidation

Changes in the Scope of Consolidation

As of March 31, 2021, the scope of consolidation comprised Covestro AG and 47 consolidated companies (December 31, 2020: 47 companies) and was therefore unchanged in the first quarter of 2021 compared to the end of fiscal 2020.

Acquisitions and Divestitures


On April 1, 2021, Covestro successfully completed the acquisition of the Resins & Functional Materials (RFM) business from Koninklijke DSM N.V., Heerlen (Netherlands). The responsible authorities approved the transaction after Covestro and Koninklijke DSM N.V. reached an agreement on the purchase at the end of September 2020. The acquisition of RFM makes the Coatings, Adhesives, Specialties segment a leading supplier of sustainable coating resins. A due to the acquisition even more comprehensive and highly innovative product portfolio will offer customers clear added value. The transaction covers innovative projects such as Additive Manufacturing, Advanced Solar Coatings, and Niaga. Covestro and Koninklijke DSM N.V. agreed on a preliminary purchase price of €1,624 million, which was paid in cash.


On February 25, 2021, Covestro signed an agreement to sell the assets and liabilities (disposal group) of the systems house business in the Middle East to the current co-shareholder Pearl Industries Overseas Ltd., Dubai (United Arab Emirates). The sale of this systems house business is part of Covestro’s portfolio optimization process, during the course of which Covestro sold the only North American systems house in April 2017 and Covestro’s European systems house business in November 2019. The systems house business is part of the company’s Polyurethanes segment and offers customer-specific polyurethane systems to the construction sector in particular. The transaction is structured as a share deal. The expected selling price was lower than the value of the net assets to be sold, which were written down accordingly. Impairment charges led to a loss totaling €16 million reported in production costs, selling expenses, and general administration expenses in fiscal 2020. In connection with this sale, current assets amounting to €25 million and liabilities of €12 million were classified as “held for sale” in accordance with IFRS 5 (Non-current Assets Held for Sale and Discontinued Operations). This transaction is expected to close in the second quarter of 2021 and is subject to approval by regulators.