Note 5 Business combinations
2016
During 2016 Peab acquired 90.3 percent of the shares in Solberg Maskin AS. The company was 100 % consolidated through the anticipated acquisition method, since Peab has a put/call option for the acquisition of the rest of the shares. The company works with machine contracts in civil engineering in Norway, primarily concentrated to the area around Trondheim. In addition, Peab acquired the gravel and rock operations in Kållered and Torup in 2016 as well as cement production entailing the cement factory in Borås.
The above acquisitions in 2016 individually do not have any material acquisition effect from a Group perspective and the information on acquisition effects is therefore given collectively.
In the period after acquisition the above subsidiaries contributed SEK 110 million to Group income and SEK 0 million to profit in 2016. If the acquisitions had taken place on 1 January 2016, the combined effect of these acquisitions on Group income would have been SEK 216 million and on profit for the year by SEK 3 million.
Effects of acquisitions in 2016
The acquisitions’ preliminary effects on Group assets and liabilities are shown below. The acquisition analyses may be adjusted during a twelve month period.
Goodwill consists of, among other things, human resources and future synergy effects regarding common systems and shared resources which do not meet the criteria for recognition as intangible assets at the time of acquisition.
Total transferred compensation amounted to SEK 228 million.
During the year, the acquisition of assets also occurred through the acquisition of shares (asset acquisitions which are not business combinations) which resulted in a cash flow of SEK -277 million and primarily refer to project and development properties with development rights in Gothenburg, Jönköping and Oslo.
Acquisitions of non-controlling interests
In 2016 Peab acquired the remaining shares, 9.9 percent, in K. Nordang AS. The company was previously consolidated to 100 percent using the Anticipated acquisition method, because there was a put/call option for the acquisition of the rest of the shares.
Acquisitions after the balance sheet date
No substantial acquisitions have been made during 2017 as of the presentation of these financial reports.
2015
In 2015 Peab aquired 100 percent of Öresundskraft Tjänster AB, now called ATS Tjänster AB and operations at Masab Asfalt and Renew Consulting och Construction. The acquisition effect of these acquisitions was immaterial from a Group perspective. Total transferred compensation amounted to SEK 33 million.
In the period after acquisition the above subsidiaries and operations contributed SEK 108 million to Group income and SEK 1 million to profit in 2015. If the acquisitions had taken place on 1 January 2015, the combined effect of these acquisitions on Group income would have been SEK 200 million and on profit for the year by SEK 1 million.
During the year, the acquisition of assets also occurred through the acquisition of shares (asset acquisitions which are not business combinations) which resulted in a cash flow of SEK -675 million and primarily refer to project and development properties with development rights in Solna, Stora Hammar, Partille and Kungsbacka.
The acquired companies’ net assets at the time of acquisition:
| MSEK | 2016 | 2015 |
| Intangible fixed assets | 25 | 9 |
| Tangible fixed assets | 262 | 21 |
| Deferred tax recoverables | 4 | – |
| Project and development properties and inventories | 14 | 1 |
| Accounts receivable and other receivables | 53 | 14 |
| Liquid funds | 14 | 2 |
| Interest-bearing liabilities | -82 | -1 |
| Deferred tax liabilities | -14 | -1 |
| Provisions | -30 | – |
| Accounts payable and other current liabilities | -34 | -15 |
| Net identifiable assets and liabilities | 212 | 30 |
| Previous value of share in joint venture | -7 | – |
| Group goodwill | 23 | 3 |
| Consideration transferred | 228 | 33 |
Consideration transferred
| MSEK | 2016 | 2015 |
| Liquid funds | 151 | 32 |
| Contingent consideration | 24 | 1 |
| Promissory note | 53 | – |
| Total consideration transferred | 228 | 33 |