Sections

ideals
Business Essentials for Professionals



London To Be Post Brexit Headquarter For This Spanish Bank


01/09/2018


London To Be Post Brexit Headquarter For This Spanish Bank
A bet that London would continue to retain its position as the center piece in the European financial market even after Brexit is being placed by Spain’s Alantra Partners SA. And this is the reason that the Spanish bank is contemplating the moving of its present global headquarters from Madrid to London, reported the media quoting sources with sufficient knowledge about the issue.
 
The media reports further quoted the sources who asked not to be identified because the plan is private saying that considerations of the number of employees that it would need for deployment for its London headquarters is being made by the investment bank and money manager. The bank at present is in charge of managing assets worth 3.7 billion euros ($4.4 billion) and has an employee strength of almost 350 placed in in 21 different countries. There were no comments made by a spokeswoman for Alantra.
 
This plan and decision of the Spanish bank is in stark contrast to what some of the other financial institutions are doing and contemplating post Brexit. Many of the global banks and financial institutions that have their European headquarters in London fear that there can be a situation where passporting rights would be lost by them when Britain leaves the European Union. Passporting rights allow free movement of goods and services to be traded freely throughout the EU and hence they are finalizing plans to relocate their headquarters outside of the U.K. and elsewhere in Europe.
 
Large European cities like Frankfurt and Paris are the choices of banks and lenders like Goldman Sachs Group Inc., Deutsche Bank AG and Bank of America Corp. for shifting of their European headquarters if no trade deal is struck between the UK and the EU.
 
Sam Woods, chief executive officer of the Bank of England’s Prudential Regulation Authority, had said late last year that as many as 75,000 jobs could be lost in the financial sector – including banking and insurance sectors, due to Brexit, and primarily in London if there is no proper Brexit deal between the two parties. A recent a Telegraph report claimed that U.K. Prime Minister Thresa May is contemplating to the appointment of a minister to look after Britain’s exit in the case no deal is struck with the EU and this raised worries about the ability of May to forge a favorable agreement for departure.
 
Last October, London-based advisory Catalyst Corporate Finance was bought over by Alantra following the bank going public through a merger with Dinamia Capital in 2015. There are 70 professionals in the UK for Catalyst.
 
Executive Chairman of the bank Santiago Eguidazu has said that the bank’s expansion into London is being driven by U.K.’s role and place in the global finance industry and that role was more than the uncertainties that surround Brexit. Eguidazu had further said at the time of the deal that in terms of mergers-and-acquisitions market in Europe, Britain the most important place.
 
(Source:www.bloomberg.com)


In the same section
< >