G32 Divestments, discontinued operations and assets held for sale

The divestments of business combinations executed in 2021 and 2022 are set out below.

Business area


Divestment date

Annual revenue

No. of employees






Sandvik Manufacturing and Machining Solutions


March 30, 2021



Sandvik Mining and Rock Solutions

Shandong ZhongRui Mining Equipment Manufacturing Co., Ltd

September 30, 2021



Sandvik Mining and Rock Solutions



450 MSEK in 2019












Sandvik Mining and Rock Solutions

DSI Techno LCC

July 7, 2022

120 MSEK 12M Q3 21-Q2 22


Sandvik Materials Technology

Distribution of Alleima

August 30, 2022

13,405 MSEK in 2021


Divestments and assets held for sale

Sandvik had no divestments with major impact during 2022. As of December 31, 2022, the Group recognizes SEK 121 million of assets held for sale and SEK 97 million of liabilities directly attributed to assets held for sale, of which the main part is attributable to the Mining Systems business divested in 2017. See further details under the Discontinued operations section below.

Distribution to owners

At the Annual General Meeting on April 27, 2022, the formal decision to distribute all shares in the Parent Company of the business area Sandvik Materials Technology (SMT) to the shareholders of Sandvik was taken. The distribution was completed August 31, 2022, when SMT was listed on Nasdaq Stockholm under the name Alleima. The opening price paid was SEK 44 per share.

At distribution of the Alleima shares, Sandvik recognized a net capital loss of SEK 4,460 million within discontinued operations. The loss represents the difference between the fair value of Alleima and the carrying value of the net assets of Alleima, at the time of the distribution. As part of the distribution, all historical translation differences allocated to Alleima, amounting to SEK 1,067 million, have been recycled to the income statement within discontinued operations.

Discontinued operations

The Mining Systems (Misys) business was divested to FLSmidth and Nepean already in 2017, however a number of ongoing projects were kept to be delivered by Sandvik in 2017–2019, through an operational agreement with FLSmidth. The majority of the projects were completed by the end of 2019, however Mining Systems still has some personnel and guarantee commitments classified as discontinued operations.

Income statement for discontinued operations







Cost of sales and services



Gross profit






Expenses and other operating income, net



Operating profit






Net financial items



Profit before tax






Income tax



Profit from operations






Loss on remeasurements to fair value



Profit (loss) from divestment


Translation differences recycled


Loss for the period, Discontinued operations



Whereof Misys



Whereof Alleima






Cash flow from operating activities



Cash flow from investing activities



Cash flow from financing activities



Cash flow from discontinued activities



Accounting principles

Assets held for sale and discontinued operations

Disposal groups held for sale

Disposal groups are classified as held for sale if their carrying amount will be recovered principally through a sale transaction rather than through continuing use and a sale is considered highly probable. To be highly probable, actions to complete the transaction are initiated and the transaction is expected to be completed within one year. The disposal group is measured at the lower of the carrying amount and fair value less costs to sell.

An impairment loss is recognized for any initial or subsequent write-down of the disposal group to fair value less costs to sell.

Non-current assets (including those that are part of a disposal group) are not depreciated or amortized while they are classified as held for sale. Interest and other expenses attributable to the liabilities of a disposal group classified as held for sale continue to be recognized.

Non-current assets classified as held for sale and the assets of a disposal group classified as held for sale are presented separately from the other assets in the balance sheet. The liabilities of a disposal group classified as held for sale are presented separately from other liabilities in the balance sheet.

Discontinued operations

To qualify as discontinued operations, a component of the Group must, in addition to having been classified as a disposal group held for sale, also represent a separate major line of business or be a part of a single coordinated plan to dispose of a separate major line of business.

Loss of control of a wholly-owned subsidiary with an interest retained

When the Group disposes of a significant part of its interest, and therefore loses control of a subsidiary, it deconsolidates the subsidiary. If the retained interest in the entity fulfills the criteria of being an associate, it is accounted for at fair value at the disposal date, and subsequently accounted for using the equity method. The gain or loss of the transaction is the difference between the fair value of the consideration received as well as the fair value of the retained interest, and the carrying value of the former subsidiary’s net assets (including any related goodwill), and is recorded in the income statement. Any portion of the gain or loss related to the remeasurement of the retained interest to fair value is disclosed separately.

Distribution to owners

The distribution of Alleima has been recognized and presented in accordance with IFRS 5 Non-current Assets Held for Sale and Discontinued operations and IFRIC 17 Distribution of Non-cash Assets to Owners.

The income statement includes Alleima up to distribution, the comparative periods in the income statement have been updated. Alleima’s result for the period is presented separately within discontinued operations. The comparative period for the balance sheet includes Alleima. The cash flow is presented separately and includes Alleima up to distribution.