Nigel Farage speaks about Mrs Merkel
More Brexit Bounce as mergers and acquisitions increase by eightfold after the EU Referendum win
Overseas buyers lured by a plunge in the pound are looking to snare British companies on the cheap, ensuring a steady flow of deals since Britain voted to leave the European Union and defying expectations of an M&A drought.
Almost 60 transactions totalling $34.5 billion have been struck by foreign companies for British firms since June 23, according to Thomson Reuters data, compared with 79 deals amounting to $4.3 billion in the month leading up to the vote.
This activity – dominated by Japanese group SoftBank’s $32 billion swoop for chip designer ARM Holdings – has defied warnings that dealmaking could dry up for a period if Britain backed Brexit, given uncertainty surrounding risks to the economy and access to the EU single market.
The list of British takeovers could grow after the summer, according to bankers who say they are working on possible bids on behalf of foreign companies interested in UK targets.
The SoftBank deal was hailed by the government as a sign of UK economic resilience, prompting new Prime Minister Theresa May to declare the country “open for business”.
“Clearly this is a buying opportunity,” said Ben Ward, head of UK corporate at law firm Herbert Smith Freehills. “People with strong currencies – dollar, renminbi, yen – will no doubt be interested in acquiring sound sterling-denominated assets.”
There have been dozens of other deals since the referendum.
South African retailer Steinhoff agreed to pay nearly 600 million pounds for British-based discount chain Poundland on July 13, for example.
It came a day after AMC Entertainment Holdings – an American company majority-owned by a Chinese conglomerate – said it would buy London-based Odeon & UCI Cinemas Group to create the world’s largest cinema operator, in a deal valued at about 921 million pounds.
Surveys conducted in the run-up to the referendum had warned a Brexit vote would threaten M&A activity.
A study released on June 16 by Merrill Corporation, a provider of technology and services in the M&A industry, and market intelligence firm The M&A Advisor found a Brexit vote would have a “negative and tangible” near-term impact on UK dealmaking, with British companies becoming less attractive to overseas buyers.
A survey of 1,500 global dealmakers published the same day by technology provider Intralinks suggested a decision to leave the EU would lead to dealmaking “chaos”, driving down M&A levels in Britain as well as the rest of Europe.
But the M&A drought has yet to materialise.
The sectors with the highest concentration of foreign takeovers in the past four weeks were technology, consumer, industrials and media, with an overall 37 sales valued at $33 billion. Industry sources said some had roots in discussions that began well ahead of the June referendum……..
It seems that all the scaremongering doom and gloom ‘experts’ were wrong.
During a recent meeting between Scottish UKIP MEP David Coburn and European Parliament President Schulz, the EU President stated that Scotland will have to leave the European Union along with the rest of the UK, once Article 50 is triggered, and the 2 year leaving process begins.
The outcome of this will likely put an end to any halfway compromise which had been suggested by SNP Leader Nicola Sturgeon.
During this meeting, it is also noted that the President Martin Sculz had only met with Nicola Sturgeon, out of “one of his duties” of meeting other heads of Government. He confirmed that if Scotland wish to be members of the European Union in future, that they must do so by becoming an independent nation, and reapplying for membership. In which case Scotland would need to adopt the Euro as per the rules of any new country now becoming EU members. Scotland would also need to become part of the Schengen ‘Visa Free Travel’ zone.
Nicola Sturgeon had suggested a Veto on the result to destroy any chances of Brexit for the entire UK, but this would only be able to happen had the EU accepted Sturgeon’s suggestion of the rest of the UK leaving whilst allowing Scotland to remain.
Mr Coburn said in a statement: “President Schulz is no more interested in ‘Balkanising’ the UK than Great Britain is in ‘Balkanising’ the EU – especially Spain and the Baltic States.”
He said: “Scotland voted to Remain in the EU voting as the United Kingdom. We knew there would be a pan UK vote on Europe when we voted No in the [2014 independence] referendum.
“More Scots voted to Remain in the UK than voted to Remain in the EU and uncomfortably for the First Minister a third of SNP members voted to Leave the EU.”
He added: “She has no mandate for a second independence referendum and the SNP would undoubtedly lose.”
with thanks to Guerrilla brexit
Demo setting up now outside No 10 ?#?no3rdrunway
UKIP are rolling their tanks onto Labour’s lawn after Owen Smith said he would try to block Brexit if he becomes leader. Yesterday “Oily” Smith went viral after he pledged a second referendum and admitted it was “tempting” not to trigger Article 50. UKIP leadership frontrunner Steven Woolfe tells Guido such a move would turn the north purple:
“Owen Smith’s disdain for his own voters is frankly disgraceful. My message to the millions who have been left behind by Labour’s sneering and condescending political class is simple – UKIP will speak for you. We are your new home.”
Smith’s rhetoric might appeal to Europhiles in the PLP, but 70% of Labour MPs represent seats which voted to Leave. This graph from Professor Matthew Goodwin shows the Leave vote in Labour areas:
A new, northern, working class UKIP leader versus an oily, Surrey-dwelling Europhile Labour leader? It’s obvious who UKIP want to win the Labour leadership – Owen Smith is the kamikaze candidate…