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Notes to the Consolidated Financial Statements
10. Acquisitions, disposals and investments
10.1 Acquisitions and disposals
10.2 Assets or disposal groups classified as held for sale
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10.3 Investments in associates and joint ventures
Q Q Heineken N.V. Report of the Report of the Financial Sustainability Other
Annual Report 2020 Introduction Executive Board Supervisory Board Statements Review Information
Acquisitions and disposals in 2020
During 2020, there were no significant acquisitions or disposals.
Prior year adjustments
During 2020, all the provisional accounting periods related to acquisitions in 2019 were closed without
material adjustments.
The assets and liabilities below are classified as held for sale following the commitment of HEINEKEN to
a plan to sell these assets and liabilities. Efforts to sell these assets and liabilities have commenced and are
expected to be completed within one year.
Assets held for sale and liabilities associated with assets classified as held for sale
In millions of
2020
2019
Current assets
Property, plant and equipment
17
46
Intangible assets
Other non-current assets
7
65
Assets classified as held for sale
24
111
Current liabilities
Non-current liabilities
Liabilities associated with assets classified as held for sale
Accounting estimates and judgements
HEINEKEN classifies assets or disposal groups as held for sale when they are available for immediate sale
in its present condition and the sale is highly probable. HEINEKEN should be committed to the sale and it
should be unlikely that the plan to sale will be withdrawn. This might be difficult to demonstrate in practice
and involves judgement.
Accounting policies
Assets or disposal groups comprising assets and liabilities, that are expected to be recovered primarily
through sale rather than through continuing use are classified as held for sale. Immediately before
classification as held for sale, the assets, or components of a disposal group, are measured at the lower of their
carrying amount and FVLCD.
Intangible assets and P,P&E once classified as held for sale are not amortised or depreciated. In addition,
equity accounting of equity-accounted investees ceases once classified as held for sale.
HEINEKEN has interests in a number of joint ventures and associates. The total carrying amount of these
associates and joint ventures was €4,437 million as at 31 December 2020 (2019: €4,868 million) and the total
share of profit and other comprehensive income was a loss of €15 million in 2020 (2019: €144 million, profit).
The share of profit includes impairments of associates and joint ventures of €139 million (2019: €30 million).
The investments in associates and joint ventures includes the interest of HEINEKEN in United Breweries
Limited (UBL) in India. On 10 October 2018, officials from the Competition Commission of India visited
UBL for an investigation in relation to allegations of price fixing. The updated investigation report was
communicated to UBL on 19 March 2020. UBL has filed its comments to the investigation report on 28 August
2020. As the decision of the Competition Commission of India is pending, UBL deems it not practicable at this
stage to estimate its potential financial effect, if any.
The associate CRH (Beer) Limited ('CBL') is considered to be individually material. HEINEKEN holds a
shareholding of 40% in CRH (Beer) Limited ('CBL') as of 29 April 2019. CBL holds a controlling interest of
51.67% in China Resources Beer (Holdings) Co. Ltd. ('CR Beer'), a company incorporated in Hong Kong and
listed on the Main Board of The Stock Exchange of Hong Kong Limited, operating in the beer business in
China. Consequently, HEINEKEN has an effective 20.67% economic interest in CR Beer. Based on the closing
share price of HKD 71.40 as at 31 December 2020, the fair value of this economic interest in CR Beer amounts
to €5,032 million. The carrying amount of CBL as at 31 December 2020 amounts to €2,508 million.
Set out below is the summarised financial information of CR Beer, not adjusted for the percentage of
ownership held by HEINEKEN. The financial information has been amended to reflect adjustments made
by HEINEKEN when using the equity method (such as fair value adjustments). Due to a difference in
reporting timelines, the financial information is included with a two-month delay. This means that the
financial information included relates to the period November 2019-October 2020. The reconciliation
of the summarised financial information to the carrying amount of the effective interest in CR Beer is
also presented.
