Acquisition of businesses

6 Months Ended

Jun. 30, 2020

Disclosure of acquisition of businesses [abstract]

Acquisition of businesses

7. Acquisition of businesses

Fair value of assets and liabilities arising from acquisitions:

(USD millions)	H1 2020	H1 2019
Property, plant and equipment	26	44
Right-of-use assets	32
Currently marketed products	269
Acquired research and development	8 602	449
Deferred tax assets	470	20
Financial and other assets	49
Inventories	84	6
Trade receivables, marketable securities and other current assets	109	4
Cash and cash equivalents	76
Deferred tax liabilities	– 1 928	– 101
Current and non-current financial debts	– 32	– 2
Current and non-current lease liabilities	– 44
Trade payables and other liabilities	– 144	– 9
Net identifiable assets acquired	7 569	411
Acquired cash and cash equivalents	– 76
Goodwill	2 537	75
Net assets recognized as a result of business combinations	10 030	486

Note 3 details significant acquisitions of businesses, specifically, The Medicines Company and the Japanese business of AGI in 2020, and IFM Tre, Inc. in 2019. The goodwill arising out of these acquisitions is attributable to the buyer specific synergies, the assembled workforce, and the accounting for deferred tax liabilities on the acquired assets. Goodwill of USD 59 million in 2020 (2019: nil) is tax deductible.