ZURICH, Jan 29 (Reuters) - Switzerland announced on Wednesday that it will lift the restrictions blocking the trading of Swiss shares on EU stock exchanges on May 1, facilitating potential cross-border mergers.
In 2019, Switzerland implemented protective measures for its stock exchange after the EU revoked its recognition of regulatory equivalence for the Swiss exchange during disputes over bilateral trade negotiations. These measures required trading of Swiss shares to occur exclusively on Swiss exchanges. In December, Switzerland and the EU finally reached an agreement after lengthy and challenging talks.
With the EU having amended the relevant legal framework, Switzerland's protective action concerning the EU is now deemed unnecessary and will be deactivated to benefit Swiss companies, stated the Swiss government.
Consequently, trading Swiss equities on Swiss stock exchanges will no longer be hindered by EU regulations.
The Swiss protective measures faced criticism in Switzerland when it was revealed that they could potentially impact a $30 billion merger between Swiss company SGS and French competitor Bureau Veritas that was under consideration at the time.
SGS eventually terminated the merger discussions, with an individual familiar with the situation mentioning that the stock market protections did not significantly influence that decision.