Swiss company in foreign hands

Foreign investors are keen on Swiss companies. The last example: Credit Suisse. On Thursday, it was announced that the Saudi National Bank owns a 9.9 percent stake in the troubled bank. American Harris Associates and other Middle East financiers have been shareholders for some time. However, CS is no exception. Traditionally, those from the US have been at the forefront of foreign investors in Switzerland. They have the highest percentage of Swiss companies – and by a wide margin. These are followed by Sweden, Norway, England and Saudi Arabia with a share of 1.5 percent or less.

But others are catching up: China alone invested a total of $96 million in nine transactions in 2021. They regularly make headlines with their presence. Traditional companies such as Syngenta, Bally, Gategroup, SR Technics, Swissport, Eterna, Netstal, Swissmetal and Hotel Palace in Lucerne are already in Chinese hands. Pharmaceutical company Alcon, sanitary tech group Geberit, fragrance manufacturer Givaudan, consumer electronics group Logitech, chemical company Lonza, food group Nestlé and insurance company Zurich Insurance are almost entirely in foreign hands.

But political pressure is mounting to screen for foreign investment. A resolution by Beat Rieder (59) of the Central Council of the States of Valais in 2018 calling on the Federal Council to “protect the Swiss economy through investment controls”. Six months ago, the Federal Council submitted a preliminary draft for an investment control law for consultation. The Investment Control Act aims to pre-screen foreign investors when they take over Swiss companies. The greatest danger is that governments or foreign investors with state-related structures use direct investments to achieve political goals.