Direct investment: Major foreign acquisitions of Swedish companies 1999

Foreign direct investment assets in Sweden totalled SEK 639 billion at the end of 1999, 96 per cent of which were owned by countries in the OECD area. This is an increase of SEK 223 billion compared with 1998. A large part of this increase is a result of the merger between Swedish Astra and British Zeneca, as well as Ford’s acquisition of Volvo Personvagnar. UNCTAD’s World Investment Report 2000 shows that Sweden was the third largest recipient of direct investment during 1999. This is revealed in the Riksbank’s annual survey of direct investment, which is published today.

Swedish direct investment assets abroad totalled SEK 877 billion at the end of 1999, which corresponds to an increase of SEK 150 billion from 1998. Assets in the OECD area comprised 93 per cent of the total.

The Riksbank survey also measures the income generated by direct investment assets. Income on Swedish direct investment abroad amounted to SEK 88 billion, while income on foreign direct investment in Sweden totalled SEK 48 billion. Both of these figures are considerably higher than those for 1998.

The income on direct investment assets is booked in the current account of the Swedish balance of payments. According to the results in the current survey, income on direct investment adds up to a positive net figure of SEK 40 billion. This figure replaces the earlier data, which gives an upward revision of approximately SEK 11 billion to the balance on current account for 1999.

The survey (in Swedish; an English edition will be available soon) can be downloaded from the Riksbank’s web site www.riksbank.se (select Publications in the main menu and then Other from the list). It is also possible to order copies of the survey from Information Riksbank; e-mail: forradet@riksbank.se, tel. +46-8-787 01 00, fax +46-8-787 05 26.

For further information, please contact the Monetary Policy Department:
Maria Falk, tel. +46-8-787 03 68, or Anders Lindström +46-8-787 05 60.