4.1 Changes in scope of consolidation
Additions
|
Company |
Country |
Division 1 |
Transaction |
Interest (%) |
Date |
|
|
|
|
|
|
2022 |
|
Vam Control S.r.l. |
Italy |
MS |
Acquisition |
100% |
1 July |
|
Chinaust (Hong Kong) International Investments Limited |
China |
PS |
Foundation |
50% |
15 August |
|
|
|
|
|
|
2021 |
|
F.G.S. Brasil Indústria e Comércio Ltda |
Brazil |
PS |
Acquisition |
100% |
1 March |
|
Langfang Shuchang Auto Parts Co Ltd |
China |
PS |
Ownership increase |
from 40% to 50% |
1 June |
|
Maintenance Automatisme Commande Numerique SAS |
France |
MS |
Acquisition |
100% |
1 July |
|
Oxford Flow Utility & Industries Ltd |
Great Britain |
CM |
Ownership increase |
from 8% to 23% |
23 July |
|
Beijing Jingran Lingyun Gas Equipment Co Ltd |
China |
PS |
Ownership increase |
from 40% to 50% |
1 August |
|
Ningbo Chinaust Fitting Manufacturing Co., Ltd |
China |
PS |
Foundation |
20% |
1 December |
1 Division: PS = GF Piping Systems, MS = GF Machining Solutions, CM = Corporate Management
On 15 July 2022, 100% of the shares of the machine tool service company Vam Control S.r.l. (VAM), Onore (Italy), were acquired. Control was assumed as of 1 July 2022. Pro rata sales 2022: CHF 3 million.
On 28 February 2021, 100% of the shares of the leading manufacturer of polyethylene piping systems, F.G.S. Brasil Indústria e Comércio Ltda (FGS), Cajamar (Brazil), were acquired. Control was assumed as of 1 March 2021. FGS serves the local water and gas distribution market and other industrial segments. Pro rata sales 2021: CHF 28 million.
On 15 July 2021, 100% of the shares of the service company Maintenance Automatisme Commande Numerique SAS (MACN), La Roche-Blanche (France), were acquired. Control was assumed as of 1 July 2021. Pro rata sales 2021: CHF 1 million.
The following assets and liabilities were acquired:
|
|
|
VAM |
MACN |
FGS |
|
CHF million |
|
1 July 2022 |
1 July 2021 |
1 March 2021 |
|
|
|
|
|
|
|
Cash and cash equivalents |
|
1 |
1 |
0 |
|
Trade accounts receivable |
|
1 |
0 |
4 |
|
Inventories |
|
0 |
0 |
3 |
|
Other accounts receivable |
|
0 |
0 |
2 |
|
Prepayments to creditors |
|
|
|
0 |
|
Property, plant, and equipment |
|
3 |
1 |
4 |
|
Intangible assets |
|
|
|
0 |
|
Deferred tax assets |
|
|
|
0 |
|
Total assets |
|
5 |
2 |
14 |
|
|
|
|
|
|
|
Deferred tax liabilities |
|
0 |
0 |
|
|
Non-interest bearing liabilities |
|
2 |
1 |
7 |
|
Interest-bearing liabilities |
|
1 |
0 |
1 |
|
Net assets |
|
3 |
1 |
6 |
On 24 February 2020, 7.55% of the capital of Oxford Flow Utility & Industries Ltd was acquired with an option to acquire up to 23% of the capital in 2021. This stake was later diluted to 6.29%. On 23 July 2021, the option was exercised and further 16.67% of the capital was acquired. As of 31 December 2021, the stake amounted to 22.96%. Since the second acquisition, significant influence was assumed and the investment was recorded as an investment in associates (see note 5.2).
Disposals
On 1 April 2022, GF Corporation sold its entire investment of 50% in GF Linamar LLC, Mills River (US), a fully consolidated GF Corporate Company. In addition, the sale included loans made by GF Corporation to GF Linamar LLC over the amount of CHF 126 million. The total sale price included a contingent purchase price component of CHF 20 million that was recorded under other financial assets. GF Linamar LLC was deconsolidated per 31 March 2022 and derecognized minority interests on the accumulated losses amounted to CHF 36 million. The effect from the deconsolidation on the operating result (EBIT) was neutral. Pro rata sales 2022 amounted to CHF 34 million (Sales 2021: CHF 108 million).
The following assets and liabilities were derecognized:
|
|
|
GF Linamar LLC |
|
CHF million |
|
1 April 2022 |
|
|
|
|
|
Cash and cash equivalents |
|
6 |
|
Trade accounts receivable |
|
27 |
|
Inventories |
|
28 |
|
Other accounts receivable |
|
1 |
|
Prepayments to creditors |
|
0 |
|
Property, plant, and equipment |
|
151 |
|
Intangible assets |
|
0 |
|
Total assets |
|
213 |
|
|
|
|
|
Non-interest bearing liabilities |
|
34 |
|
Interest-bearing liabilities |
|
126 |
|
Total liabilities |
|
160 |
Mergers
As of 1 January 2022, MACN, La Roche-Blanche (France) merged into GF Machining Solutions SAS, Palaiseau (France). Division: GF Machining Solutions.
As of 1 April 2022, Georg Fischer Piping Systems Ltd, Mississauga (Canada) merged with GF Urecon Ltd, Coteau-du-Lac, Québec (Canada). The name of the merged company is GF Piping Systems Canada Ltd, Québec (Canada). Division: GF Piping Systems.
Accounting principles
Companies acquired are consolidated from the date on which control is obtained, while companies divested are excluded from the scope of consolidation as of the date on which control is lost, with any gain or loss recognized in the income statement. The assets and liabilities of acquired companies are valued at actual values at the time control is obtained. Assets and liabilities of divested companies are valued at book values at the time control is lost. For the presentation of acquisitions and divestments, the original balance sheet values and cash flows are translated into Swiss francs using the exchange rates of the respective transaction date.