Swatch Group AG 'looking to acquire component makers'

First published: 09-02-2011

Swatch Group AG, one of the world's biggest manufacturers of fashion watches, might be about to takeover component makers to help it achieve sales targets.

Businessweek.com reported that it is looking to break the US $10.5 billion (£6.5 billion) mark in the near future.
Chief executive officer Nick Hayek said that it might spend millions of pounds to increase capacity.

"There are some companies around that would deserve better management, and if we would take them over, it would be added value for these companies and their shareholder," he said in an interview.

He went on to say the Swatch Group has a "fantastic portfolio" of brands, which includes Omega watches.

Mr Hayek's words were backed up by Alessandro Migliorini, who wrote in a client note that Swatch has made "excellent progress" in raising margins, despite poor economic conditions.

Recently, Swatch Group posted a 41 per cent increase in annual net profit, with sales booming in Asia.

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