Brexit Britain, What Next? What The Public Think
Sky News hits the streets to ask members of the public how they voted in the referendum, why and what the UK should do now.
By Mark Kleinman, City Editor
The UK’s vote to leave the European Union has triggered the cancellation or postponement of billions of pounds-worth of corporate deals amid uncertainty about Britain’s economic outlook.
Sky News has learnt that an auction of NewDay, which provides store cards to high street retailers including TopShop, was called off in the days following last month’s referendum.
EU Exit: continuing coverage
Information about NewDay was supposed to be circulated to prospective buyers of the company, which was expected to be valued at about £1bn, within the last fortnight.
However, prospective buyers said on Sunday that Varde Partners, NewDay’s owner, had decided to temporarily abort the process.
Nation Divided
Play video “Brexit – A Special Programme”
Video: Brexit – A Special Programme
It is far from the only sale proposal to be torn up since the Brexit vote.
MBNA, the credit card group owned by Bank of America, is expected to inform bidders this week that it is also putting its auction on ice.
Tata Steel is also weighing whether to postpone the sale of its UK operations amid concerns about the impact of leaving the EU among some of the bidders.
Meanwhile, smaller deals, such as a plan drawn up Caledonia Investments to sell Park Holidays, a British caravan park operator, are also said to be likely to fall victim to the uncertain economic environment.
The flurry of abandoned sales is likely to accelerate job cuts in the City as a dearth of corporate activity – and associated fee revenue – lead to bosses rushing to slash costs.
One possible glimmer of hope for dealmakers is that the fall in the value of sterling leads to overseas buyers attempting to take advantage in order to snap up corporate bargains.
A number of listed companies have asked their advisers to prepare takeover defences against potential interest from American predators.
The prevailing expectation among bankers, however, appears to be that an already-subdued environment for mergers and acquisitions will become even more depressed in the months ahead.