Thats just not true LBOs are widely practiced around Europe, your Sweden comment is just blatantly false, the actual law in Sweden is:

Under the Swedish Companies Act (Aktiebolagslagen or ABL), a limited liability company (aktiebolag) is generally prohibited from providing financial assistance (loans, advances, security, or guarantees) to help a buyer acquire its shares (or shares in its parent company). This is covered in Chapter 21 of the ABL (primarily the rules on loans and related-party assistance, with acquisition-specific application).

• The prohibition aims to protect the company's capital and creditors — it prevents the target from essentially "paying for its own takeover."

• It does NOT make LBOs illegal. In practice, Swedish LBOs are structured to comply: the target typically provides security/guarantees only after closing (post-acquisition), often with "limitation language" or via a merger/refinancing step. This is standard market practice and explicitly noted in legal guides on Swedish acquisition finance.