German firms hold off UK investments ahead of Brexit talks

BERLIN: Some German companies are holding off making investments in Britain until they know more about the relationship the country will forge with the rest of Europe following the Brexit vote.

Whi le big companies like Siemens and Bosch have the deep pockets to take a longerterm view about one of Europe’s most lucrative markets, and weather uncertainty about how the divorce will play out, smaller firms are more cautious.

Britain is a major market for Germany, accounting for around seven per cent of its exports, and is likely to remain so regardless of Brexit. But Germany’s VDMA associat ion, which represents thousands of firms in the engineering industry, said many of its members were unwilling to make any financial commitments.

“Companies want to continue to do good business in Britain and most are likely now waiting to see how the exit negotiations go, once they start,” said its head Thilo Brodtmann.

Family- owned indust r ial manufacturer Kemper, for example, has shelved plans to expand its British business.

Before the Brexit vote the company, which makes

Companies want to continue to do good business in Britain and most are likely now waiting to see how the exit negotiations go, once they start. Thilo Brodtmann

air filter systems and fume extraction units for the car and construction industries, had planned to invest in its UK market ing and servicing operations this year.

“We definitely won’t do that now,” CEO Bjoern Kemper told Reuters from his office in Vreden, close to the Dutch border in the state of North RhineWestphalia. — Reuters

Traders from BGC, a global brokerage company in London’s Canary Wharf financial centre react as European stock markets open after Brexit. The immediate uncertainty is perhaps less problematic for big companies whose size and financial muscle allows...