China Haidian said it had acquired 100 percent of Corum for 86 million francs ($90.9 million).
The companies said the sale would anchor China Haidian's position in the Swiss luxury watch sector while opening new prospects for development and positioning of the Corum brand worldwide.
"This strategic agreement fulfils the long term vision of both partners for the continued development and growth of the Corum brand," they said in statement.
"I am very pleased with this acquisition and I firmly believe in the potential development of Corum," China Haidian chief executive Hon Kwok Lung said in a statement.
Founded in 1955 and based in the town La Chaux-de-Fonds in the canton of Neuchâtel, Corum is known for its gold and jewelled encrusted watches that start from 4,000 francs.
The Hong Kong-listed China Haidian Holdings Limited manufactures its own watches and also distributes selected Swiss luxury watch brands in China and throughout Asia.
China Haidian, which owns two of the top four domestic Chinese watch brands, EBOHR and ROSSINI, also owns the Swiss brand Eterna which has a license to manufacture and distribute globally "Porsche Design" watches.
It also distributes Japanese brands Casio and Citizen in China.
For the Swiss watch industry association, the new owners intentions are what is most important, and if "they intend to continue the development of the brand . . . in the long term," said its chief Jean-Daniel Pasche.
The sale was announced on the eve of Baselworld, the world's biggest watch trade fair held in the Swiss city of Basel.
WATCH INDUSTRY
Chinese firm buys Swiss upscale watchmaker
Corum, a watchmaker based in Switzerland, has been acquired by China Haidian in the first purchase of a luxury Swiss watch company by a Chinese rival.
WATCH INDUSTRY
Swatch branches out into ‘cool shades’ market
Swatch, Switzerland’s largest watch company, is branching out into sunglasses for a second time through a deal announced on Tuesday with Italian eyewear creator Safilo.
The two companies announced an agreement to collaborate on Swatch branded sunglasses billed as “creative, playful and lifestyle oriented”.
The new line of “Swatch The Eyes” will be rolled out in the spring.
Under the deal, the two companies will co-design eyewear collections while Safilo will develop and manufacture the eyewear.
Biel-based Swatch said the sun specs will be distributed through its global retail network and Safilo’s US retail chain, to be followed by additional selected North American retailers.
“Recreating a success story in eyewear via the reinterpretation of the category is an exciting challenge,” Swatch president Nick Hayek said in a statement.
“Beyond timepieces, eyewear also belongs to those product categories that customers enjoy because they merge fun, style and emotion,” Nayek said.
“We are adding an iconic brand to our portfolio, complementing our presence in the vast and fast growing mass cool consumer segment with a unique proposition that leverages the smart, playful, innovative DNA of Swatch,” Safilo CEO Luisa Delgado said.
Swatch, known for its iconic plastic watches as well as its ownership of luxury timepiece brands, earlier tried a foray in the sunglass market in the 1990s that was later abandoned.
The fresh venture comes as Swatch is struggling to boost revenues in the face of the strong Swiss franc, which ate into the company’s bottom line for 2015.
The company last week reported a net profit for the year of 1.12 billion francs, down 21 percent from 2014, while sales dipped 0.9 percent to 8.45 billion francs.
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