EN Contact Us Effect of business disposals More in this section Effect van afgestoten activiteiten 4Nederlandse tekst Effect of business disposals Integration of Bekaert’s formerly wholly-owned subsidiary in Sumaré (Brazil) into the BMB partnership On 21 June 2017 Bekaert and ArcelorMittal closed the transaction to integrate Bekaert’s formerly wholly-owned subsidiary in Sumaré (Brazil) into the BMB (Belgo Mineira Bekaert Artefatos de Arame Ltda) partnership. In line with the shareholding structure of the BMB joint venture, ArcelorMittal has become the majority shareholder (55.5%) of the steel cord entity in Sumaré and Bekaert retains the remaining shares (44.5%). With this transaction, Bekaert and ArcelorMittal extend their partnership in Brazil with the purpose to leverage the operational scale and technological competences of the steel cord business in the country, for the beneft of the customers. The Sumaré plant accounted for € 41 million in consolidated revenue over the frst half of 2017, representing € 6 million in net result. As of 1 July 2017, the entity - renamed ArcelorMittal Bekaert Sumaré Ltda – is accounted for by Bekaert under the equity method: 44.5% of the net result of the entity is represented as ‘share in the results of joint ventures and associates’. Under IFRS, the transaction is accounted for in two stages: (1) the disposal of Bekaert’s full interests (100% of the shares) in Bekaert Sumaré Ltda; and (2) the acquisition of 44.5% of the shares in the disposed company at their fair value. The second stage requires a fair valuation of the net assets acquired in order to determine any goodwill arising on the transaction. The transaction resulted in the recognition of a goodwill amounting to € 2.7 million (see note 6.2. ‘Goodwill’). This amount is presented as part of investments in joint ventures and associates. Technically, the net assets and liabilities of Sumaré had been reclassifed to assets held for sale at year-end 2016 and were still classifed as such at the moment of their disposal. However, for analytical purposes, they were reclassifed from held for sale to their original balance sheet caption in the opening balance of 2017 and, adjusted for all subsequent movements until the disposal date, presented as ‘deconsolidations’ translated at average exchange rates in the applicable notes under 6. ‘Balance sheet items’. in thousands of € Total disposals Intangible assets 870 Property, plant and equipment 32 751 Other non-current assets 5 393 Deferred tax assets 2 003 Inventories 9 544 Trade receivables 28 501 Advances paid 278 Other receivables 6 861 Cash and cash equivalents 14 014 Other current assets 150 Non-current employee benefit obligations -85 Non-current provisions -6 097 Non-current interest-bearing debt -503 Deferred tax liabilities -6 926 Current interest-bearing debt -306 Trade payables -9 750 Current employee benefit obligations -2 057 Income taxes payable -4 373 Other current liabilities -1 689 Total net assets disposed 68 579 Gain on business disposals (portion sold) 18 148 Gain on business disposals (portion retained) 14 552 Fair value of remaining interest retained -45 069 Cash disposed -14 014 Deferred proceeds -4 600 Proceeds from disposals of investments 37 596 Quick Links Let us meet! Analyst Research Annual Reports Information Center News Share Trading Shareholders' Guides Related sites Bekaert China Bekaert Japan Bekaert Latin America Bekaert Fencing North America Bridon-Bekaert The Ropes Group ASK A QUESTION Copyright © 2021 Bekaert. All rights reserved. Made By The Reference By clicking “Accept All Cookies”, you agree to the storing of cookies on your device to enhance site navigation, analyze site usage, and assist in our marketing efforts. Bekaert Cookie Policy Accept All Cookies Cookies Settings