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RAPAPORT... Swatch Group subsidiary Technocorp Holding Ltd. increased its holdings in Dubai-based Rivoli Investments LLC to majority share. The Swatch Group previously held a 40 percent equity stake in Rivoli, but purchased a tranche of shares, raising its stake to 58 percent. Rivoli operates a network of more than 360 retail businesses, many of which offer Swatch Group watch brands in the Middle East. The company reported to have a workforce of more than 1,500 employees. Patrik Schwendimann, an analyst at Zurcher Kantonalbank (ZKB), estimated that the value of additional equity purchase was $110 million, according to Reuters. In other Swatch Group news, the Swiss competition commission (COMCO) concluded its inquiry concerning the watchmaker's policy of supplying movements to third parties. COMCO approved a renegotiated agreement that allows Swatch Group to introduce a staggered reduction plan to its deliveries of mechanical movements. The Swatch Group subsidiary ETA must treat all customers equally, according to COMCO's ruling, and a clause has been added to support small and medium-sized companies to “avoid certain difficult situations,” according to a statement. Swatch Group is obliged to deliver mechanical movements until December 31, 2019, with it delivering 75 percent of the average quantities for the period 2009 to 2011 for the years 2014 and 2015; this decreases to 65 percent for 2016 and 2017 and falls to 55 percent for 2018 to 2019.
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