UK falls out of top five in­vest­ment sites post Brexit

China Daily (USA) - - BUSINESS - By BLOOMBERG

The United King­dom dropped out of busi­nesses’ top five lo­ca­tions for in­vest­ments for the first time in seven years as fears about the coun­try’s plans to exit the Euro­peanUnion added com­plex­ity to in­ter­na­tional deals, con­sul­tants Ernst & Young LLP said in a sur­vey of ex­ec­u­tives.

Bri­tish busi­nesses rank be­hind in­vest­ments in the United States, China, Ger­many, Canada and France, which make up the top des­ti­na­tions for deals ac­tiv­ity, EY said on Mon­day in its Global Cap­i­tal Con­fi­dence Barom­e­ter re­port, which is based on a sur­vey of more than 1,700 ex­ec­u­tives in 45 coun­tries.

Busi­ness lead­ers are con­cerned about geopo­lit­i­cal is­sues, such as the rise of na­tion­al­ist gov­ern­ments world­wide and cur­rency fluc­tu­a­tions, that­make cross-bor­der merg­ers and ac­qui­si­tions more dif­fi­cult, EY­said. On­top of the UK’s Brexit vote in June, un­cer­tainty around the US in­ter­est rate and up­com­ing elec­tions in a num­ber of coun­tries added to per­ceived risks to deals.

“Brexit is a prom­i­nent ex­am­ple of the rise of geopo­lit­i­cal changes that are adding com­plex­ity to cross-bor­der in­vest­ments,” ac­cord­ing to Steve Krouskos, EY’s global vice chair of trans­ac­tion ad­vi­sory ser­vices.

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