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  1. Brexit hits Richard Branson hard as Virgin Group loses third of its value

Brexit hits Richard Branson hard as Virgin Group loses third of its value

Being part of the EU guarantees no tariffs on trade on goods and services and the free movement of workers, without the hassle of visas or work permits.

By: | Published: June 28, 2016 4:32 PM
branson-reu-L “We’re not any worse than anybody else but I suspect we’ve lost a third of our value,” Richard Branson told the “Good Morning Britain” programme. (Reuters)

The impact of Britain’s vote to leave the European Union or Brexit was swift and painful for Richard Branson, founder and chairman of Virgin Group. He said on Tuesday that his group which owns shares in various companies including Virgin Media and Virgin Trains, had lost about a third of its value since last week’s vote by Britons to leave the European Union and had cancelled a deal costing some 3,000 jobs.

“We’re not any worse than anybody else but I suspect we’ve lost a third of our value,” he told the “Good Morning Britain” programme.

“We were about to do a very big deal, we’ve cancelled that deal that would have involved 3,000 jobs.”

Being part of the EU guarantees no tariffs on trade on goods and services and the free movement of workers, without the hassle of visas or work permits. Now that it is leaving, Britain will have to first negotiate its exit, which could take years, and then renegotiate new relations with Europe, which could take even longer.

With so much uncertainty looming for so long and financial markets crashing, a lot of business is suddenly in limbo. Some companies are even looking to pull back.

Multinationals that have chosen the U.K. as a base for operations across the EU are expected to reconsider some of their operations in Britain. Global banks like JPMorgan, Goldman Sachs and HSBC have said thousands could move to the mainland.

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