Despite Brexit which causes all sorts of uncertainty, UK still getting all attention from foreign investors, AP reported.
In a survey on corporate deal-making published today, consulting and accounting firm EY says Britain is the top investment destination in the world for the first time in the report’s 10-year history — overtaking the United States, which has held the top spot since 2014.
The pound’s fall since the June 2016 vote to leave the European Union has made British assets cheaper, but Steve Krouskos, a global vice chair at EY, notes Britain also remains an “open environment for foreign investors” even in the midst of the Brexit chaos. That culture, he said, is reinforced by the English language, a skilled workforce, and a strong technology base.
Those long-standing strengths have helped Britain recover as a place to do business since the shock of the June 2016 referendum, which saw the country narrowly vote to leave the EU. With so much uncertainty surrounding the future of the British economy, the country slumped down EY’s rankings. In the October 2016 survey, Britain was as low as seventh.
There have been a number of high-profile investments in Britain over the past year, including Comcast’s purchase of satellite broadcaster Sky for around 30 billion pounds (currently $39 billion) and Coca-Cola’s takeover of Costa Coffee for near 4 billion pounds ($5.2 billion).
Britain’s exit from the EU, originally scheduled for March 29, has been delayed until Oct. 31, though it could happen sooner should British lawmakers back the withdrawal agreement that Prime Minister Theresa May negotiated with the EU.
EY found that global interest in mergers and acquisitions is at a 10-year high as managers try to adapt to technological change, with 59 percent of companies planning a deal in the next year, up from 52 percent a year ago.