Volume 27 (2016) / Issue 7
The extent of the legal impact of the withdrawal of the UK from the EU on crossborder corporate activities, transactions and investment will depend on whether the UK remains part of the European Economic Area. If the UK leaves the EEA, it will be more difficult for UK companies, and in particular for financial sector firms, to do business and expand in the EEA either by acquisitions or by establishing subsidiaries and branches. In parallel, it would be more difficult for the UK to attract investment by EEA companies and investors. Furthermore, the preeminent position of London as a major global financial centre would be challenged due to the combined effect of two factors: (a) it would be more difficult for UK and EEA companies to offer their securities to investors across the EEA; and (b) selecting the UK as the country of incorporation either of the top holding company of an internationally active corporate group or of the main European arm of such a group would be less attractive. Maintaining full access to the Single Market is thus crucial for the UK economy.
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