British Companies Cut Spending on Takeovers of Foreign Businesses
Brexit uncertainties weigh on UK firms' appetite to make big investments. British companies' spending on takeovers of foreign businesses fell to its lowest in nearly five years during the three months to June.
The British pound has significantly weakened in value since the Brexit referendum in June 2016. A weaker pound makes British companies cheaper for foreign buyers and increases the cost of overseas takeovers for British firms.
The Office for National Statistics (ONS) reported, that British-based businesses spent 1.92 billion pounds ($2.46 billion) on acquiring foreign companies, the smallest amount since the third quarter of 2013 and down. The value of foreign takeovers of British companies dropped to 6.50 billion pounds from 22.32 billion pounds in the previous quarter.