Conditions ripe for Swiss company takeovers and mergers
Novartis shed its stake in cross-town rival Roche last year worth CHF21 billion.
Keystone / Georgios Kefalas
Rock bottom interest rates and excess cash sloshing around Swiss companies saw a three-fold increase in the value of mergers and acquisitions (M&A), rising to CHF170 billion ($186 billion) last year.
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The corporate shopping spree was led by the pharmaceutical and life science sectors, which have seen increased business during the Covid-19 pandemic.
The biggest deal of 2021 saw Novartis relinquish its stake in pharmaceutical rival Roche, which was worth CHF21 billion.
The pharmaceutical and life science sectors saw M&A deal activity surge from CHF6 billion in 2020 to CHF56 billion last year, comprising four of the ten largest corporate deals.
The technology, media and telecommunications industries also saw increased activity.
The sectors “have been very consistent in pursuing innovation over the past two pandemic years, and we expect that to continue this year with well-targeted investments,” said Roger van den Heuvel of consultancy company KPMG, which compiled the report.
Most transactions (46%) involved Swiss firms acquiring stakes in foreign companies, double the volume of overseas corporations taking over Swiss counterparts.
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