Deals
Brexit May Erase $1.6 Trillion From Global M&A, Study Says
- Lack of a roadmap will damage investment plans, confidence
- Baker & McKenzie study shows $240 billion lost in five years
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A disorderly exit by the U.K. from the European Union could wipe as much as $1.6 trillion from future mergers and acquisitions, a new study says.
The absence of a clear Brexit road map could lead to a cycle of political and market uncertainty and hit near-term investment plans and business confidence, according to Baker & McKenzie’s Global Transactions Forecast, which is based on financial modeling by Oxford Economics. With growth forecasts for the U.K. economy halved to 1.1 percent for 2017, merger volumes will also dip by at least $240 billion in the next five years, according to the report.