UK - Concerns over pension liabilities are causing some UK companies to pull out of merger deals, says PricewaterhouseCoopers.
The firm’s UK Deal Confidence survey found senior executives of major UK companies cited pension issues as one of the factors most influencing their merger decision-making in the next six months.
Marc Hommel, leader of PricewaterhouseCoopers HR transaction services practice, said: “Over two thirds of FTSE 350 businesses expect an increase in UK M activity over the next six months, but 56% of these organisations are worried about the impact of pensions.
“We are seeing companies pulling out of deals, citing uncertainty around pension issues. Yet there are solutions to the pension challenges, whether they are around pricing, using the clearance procedures available from the new Pensions Regulator, or working together with pension scheme trustees to arrive at mutually beneficial outcomes.”
Some 28% of senior executives cited pensions as a “high” or “major” concern.
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