2.3 – Joint Ventures and Associated Companies

Companies over which BASF exercises a significant influence or which are jointly controlled with a partner and not classified as a joint operation are accounted for using the equity method in accordance with IAS 28 (associated companies) and IFRS 11 (joint ventures).

Since 2020, a distinction between shareholdings accounted for using the equity method in integral and those in non-integral companies has been made.

The material equity-accounted shareholding that has been classified as integral is BASF-YPC Company Ltd., Nanjing, China, in which BASF and Sinopec each hold 50%, and which operates the Verbund site in Nanjing.

The material non-integral shareholding is Wintershall Dea GmbH, Kassel/Hamburg, Germany. The company, which has been in existence since May 1, 2019 and in which BASF holds 72.7%, is considered a joint venture because BASF and its partner LetterOne defined the decision-making processes in the governing bodies as such that neither party alone can control the relevant activities.

Stahl Lux 2 S.A., Luxembourg (BASF interest: 16.32%) is classified as an associated company as BASF can exercise significant influence over the company in a number of relevant board decisions.