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19. Investments in associates

Changes in the carrying amounts of the Group’s interests in associates included at equity were as follows:

	2007	2008
	€ million	€ million
Carrying amounts, January 1	532	484
Acquisitions	-	-
Other additions	28	14
Divestitures	-	-
Miscellaneous retirements	-	(15)
Equity-method loss after taxes	(45)	(47)
Exchange differences	(31)	14
Carrying amounts, December 31	484	450

For strategic reasons, the Bayer MaterialScience subgroup holds interests in companies that are included at equity in the consolidated financial statements of the Bayer Group.

In 2000, Bayer acquired the polyols business and parts of the propylene oxide (PO) production operations of Lyondell Chemicals. The strategic objective is to ensure access to patented technologies and safeguard the long-term supply of PO, a starting product for polyurethane, at reasonable prices. As part of this strategy, two joint ventures have been established to produce PO (PO JV Delaware U.S.A., Bayer’s interest 41%, and Lyondell Bayer Manufacturing Maasvlakte VOF, Netherlands, Bayer’s interest 50%). The production facilities of both companies are operated by Lyondell. Bayer benefits from fixed long-term supply quotas/volumes of PO based on fixed price components.

The following tables present a summary of the aggregated income statement and balance sheet data for the associates included at equity in the consolidated financial statements of the Bayer Group.

Aggregated income statement data of associates included at equity	2007	2008
	€ million	€ million
Sales	1,072	919
Gross profit	(18)	(25)
Net loss	(92)	(95)
Share of pre-tax loss	(45)	(47)
Other	-	-
Pre-tax loss from interests in associates included at equity	(45)	(47)
Pre-tax loss upon derecognition of other interests	-	(15)
Pre-tax loss from interests in associates included at equity (equity-method loss)	(45)	(62)

Aggregated balance sheet data of associates included at equity	Dec. 31, 2007	Dec. 31, 2008
	€ million	€ million
Noncurrent assets	962	944
Current assets	260	238
Noncurrent liabilities	11	13
Current liabilities	191	178
Stockholders’ equity	1,020	991
Share of stockholders’ equity	463	430
Other	21	20
Carrying amount of associates included at equity	484	450

The item “other” mainly comprises differences arising from adjustments of data to Bayer’s uniform accounting policies, purchase price allocations and their amortization in income, and impairment losses.

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