Unilever 2005 Annual Report Download - page 131

128 Unilever Annual Report and Accounts 2005
Notes to the consolidated accounts
Unilever Group
28 Acquisitions and disposals
Acquisitions
During 2005 an additional investment into Langholm Capital Partners Fund was made and classified as an acquisition of associates (see note 13
on page 103). We also purchased some minority interests in subsidiary companies. No other acquisitions were made in 2005.
The following table sets out the effect of acquisitions of group companies in 2005 on the consolidated balance sheet. The fair values currently
established for all acquisitions made in 2005 are provisional. The goodwill arising on these transactions has been capitalised and is subject to
an annual review for impairment (or more frequently if necessary) in accordance with our accounting policies as set out in note 1 on page 82.
Any impairment is charged to the income statement as it arises. Detailed information relating to goodwill is given in note 10 on pages 98 and 99.
€ million € million
Acquisitions 2005 2004
Net assets acquired 733
Goodwill arising in subsidiaries 13 7
Consideration 20 40
Consideration consisted wholly of cash.
Disposals
The results of disposed businesses are included in the consolidated accounts up to their date of disposal. The principal disposals in 2005 were
UCI across the world, Stanton Oil in UK and Ireland, Dextro in various countries in Europe, Opal in Peru, Karo and Knax in Mexico, spreads and
cooking products in Australia and in New Zealand, Crispa, Mentadent, Marmite, Bovril and Maizena in South Africa, frozen pizza in Austria,
Biopon in Hungary and tea plantations in India.
In March 2005 Unilever completed the restructuring of its Portuguese foods business. Before the restructuring Unilever Portugal held an interest
in FIMA/VG - Distribuição de Produtos Alimentares, Lda. (FIMA) foods business, a joint venture with Jerónimo Martins Group, in addition to its
wholly owned Bestfoods business acquired in 2000. As a result of the transaction the two foods businesses – FIMA and Unilever Bestfoods
Portugal – were unified and the joint venture stakes were re-balanced so that Unilever now holds 49% of the combined foods business and
Jerónimo Martins Group 51%.
In 2004, the principal disposals were Puget oils in France, the frozen pizza and baguette businesses in various countries in Europe, Rit, Niagara,
Final Touch and Sunlight in North America, Capullo, Mazola and Inca in Chile and Mexico and Dalda oils in Pakistan. Our chemicals business in
India (Hindustan Lever Chemicals) was merged with Tata Chemicals. Various other smaller brands were also sold as part of our Path to Growth
strategy.
€ million € million
Disposals 2005 2004
Goodwill and intangible assets 150 23
Other non-current assets 78 52
Current assets 207 145
Trade creditors and other payables (106) (34)
Provisions for liabilities and charges (15) (9)
Minority interest (1) (25)
Net assets sold 313 152
(Gain)/loss on recycling of currency retranslation on disposal (5) 2
Profit on sale attributable to Unilever 655 338
Consideration 963 492
Cash 845 417
Cash balances of businesses sold (17) (4)
Financial assets, cash deposits and borrowings of businesses sold 839
Non-cash items and deferred consideration 26 40
Payment received in prior year 101 –