• Home
  • News
  • Fortune 500
  • Tech
  • Finance
  • Leadership
  • Lifestyle
  • Rankings
  • Multimedia
MagazineBrexit

What Happens to U.K. Companies if There’s a No Deal Brexit?

By
David Meyer
David Meyer
By
David Meyer
David Meyer
January 16, 2019, 4:44 PM ET
Alberto Pezzali—NurPhoto via Getty Image

The very possible scenario that the U.K. leaves the European Union without a negotiated exit deal would be a shock to everyone’s system. With no trade deals in place, tariffs would jolt into effect, causing shortages on shelves and blockages in ports.

So, how are businesses preparing for the possibility of no deal?

Many financial services firms are moving assets out of the U.K. and into the EU. As the consultancy giant EY reported, 20 companies have already publicly announced such shifts. EY put a “conservative estimate” of 800 billion pounds ($1.02 trillion) on the total.

Barclays has shifted ownership of its French, German, and Spanish operations from its British base to its Irish subsidiary. More than a third of big U.K. financial services firms are moving staff abroad.

Many industries are stockpiling. Though the British government has announced that medicine imports will get priority at the ports in the event of no deal, pharma giants such as AstraZeneca and Merck are caching meds, just to make sure. (Astra­Zeneca has also begun parallel testing at a Swedish site, owing to likely sudden changes in regulation.)

And in the auto industry, Aston Martin and Volkswagen-owned Bentley are not only stockpiling components in order to avoid manufacturing disruptions, they’re also arranging to use ports other than Dover, the U.K.’s main ferry link with the European mainland, which is likely to become heavily congested.

“We have to prepare for the worst-case scenario,” Aston Martin CEO Andy Palmer told Reuters.

This article originally appeared in the February 2019 issue of Fortune.

About the Author
By David Meyer
LinkedIn icon
See full bioRight Arrow Button Icon
Rankings
  • 100 Best Companies
  • Fortune 500
  • Global 500
  • Fortune 500 Europe
  • Most Powerful Women
  • Future 50
  • World’s Most Admired Companies
  • See All Rankings
Sections
  • Finance
  • Leadership
  • Success
  • Tech
  • Asia
  • Europe
  • Environment
  • Fortune Crypto
  • Health
  • Retail
  • Lifestyle
  • Politics
  • Newsletters
  • Magazine
  • Features
  • Commentary
  • Mpw
  • CEO Initiative
  • Conferences
  • Personal Finance
  • Education
Customer Support
  • Frequently Asked Questions
  • Customer Service Portal
  • Privacy Policy
  • Terms Of Use
  • Single Issues For Purchase
  • International Print
Commercial Services
  • Advertising
  • Fortune Brand Studio
  • Fortune Analytics
  • Fortune Conferences
  • Business Development
About Us
  • About Us
  • Editorial Calendar
  • Press Center
  • Work At Fortune
  • Diversity And Inclusion
  • Terms And Conditions
  • Site Map

© 2025 Fortune Media IP Limited. All Rights Reserved. Use of this site constitutes acceptance of our Terms of Use and Privacy Policy | CA Notice at Collection and Privacy Notice | Do Not Sell/Share My Personal Information
FORTUNE is a trademark of Fortune Media IP Limited, registered in the U.S. and other countries. FORTUNE may receive compensation for some links to products and services on this website. Offers may be subject to change without notice.