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Monday
May172010

UK Companies in Danger of Being Swallowed By Foreign Interests

One of the most emotional occurrences to take place this year was the selling of British firm Cadbury’s to the American giant Kraft.  To say this was hostile is to barely scratch the surface of the emotions and feelings of those who work for the company, not to mention everyone else in the UK who has strong feelings about the history of the company.

According to the latest reports I have been reading, industrial firms are the area where the most danger lies.  And ironically it could be those companies that have done well to make it through the recession in a strong position that could be in the most danger.

Most of us will have noticed that the pound is still quite weak at the moment.  The state the UK economy is in and the imminent UK election have not helped in this respect.  This has opened the way for foreign businesses to look in the direction of UK industry, which has been effectively cheapened by the weaker pound.

I have noticed that many of the businesses that are ripe for takeover are not particularly large either.  They are not inconsequential but many are smaller than their counterparts in other areas of Europe.  This means that upcoming months could produce more hostile takeover efforts depending on who has the idea to buy what.  So could it be that by the end of this year Britain has lost another few businesses that were originally home grown?  If it does turn out to be true it will be a shame.

In the meantime if you want to receive professional help and advice concerning your own company interests, contact us here at St Matthew to discuss your concerns.

 



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