Vodafone has confirmed that it is now reassessing the long-term viability of keeping its headquarters in the UK after the country leaves the EU, serving the British economy the stark possibility of losing one of its biggest global corporates. With last week’s referendum pushing the Leave button, Vodafone is concerned that the lingering economic, regulatory and legal uncertainty surrounding what will likely be a protracted Brexit has made it necessary to consider other options.

Too soon to tell

A statement from Vodafone released on Tuesday said it was not yet possible to ‘draw any firm conclusions’ about the implications of Brexit for the company, but emphasised that the UK-headquarted Vodafone (the world’s second largest mobile phone carrier) had enjoyed many benefits through Britain’s membership in the EU, including access to the EU free trade bloc and legal uniformity across jurisdictions. It also emphasised that a ‘vast majority’ of Vodafone’s 462 million customers, 108,000 employees and 15,000 suppliers are based outside the UK, with 55 per cent of the company’s pre-tax earnings deriving from the rest of Europe.

Corporexit?

Vodafone is not alone in pondering its future in the UK. According to recent coverage in The Guardian, several other major corporates are considering moving their base outside the UK if post-Brexit conditions become unfavourable. This week, the Confederation of British Industry lobby group called on the UK government to give global business firm leadership on the Brexit roadmap and to boost certainty for foreign-born workers in the UK. Business minister Sajid Javid has said that the Government will look to reassure business leaders by making continued and unfettered access to the EU single market the ‘number one priority’ going forward.  

Sources: Wall Street Journal; The Guardian