Brexit Advisory for multinational producer and distributor of oil and gas products

The client is a multinational producer and distributor of Oil and Gas products and a world leader in its respective market. As of 2018, their global revenues totalled €22.1bn, with €117m contributed from UK sales.

Background

Following the UK's decision to leave the EU in June 2016, the company was concerned about the potential issues posed by Brexit. Due to the complexities and interdependencies in the regulation of chemicals across the EU, the industry was particularly exposed to any changes to political or regulatory relationships.

The client needed a view and support form an independent third party of the key areas for consideration regarding Brexit. Mazars had recently finalised a Brexit advisory project with another international chemicals client, and so were subsequently engaged to support the client on their preparation activities.

Approach

Our approach was focused on offering robust advice and planning support. We helped our client commit to 'no regret' decisions which both minimised the shock of a given Brexit scenario, whilst also delaying any investment decisions until the certainty of an outcome.

We employed our methodology for Brexit advisory support, focusing on five key areas:

Trade & Customs
Tax
Workforce
Supply Chain & Operations
Markets

We also leveraged insight from internal experts on each of the above areas to critique the company's Brexit plan and offer insight on specialist areas including VAT and Immigration.

Outcomes

The client was able to identify gaps in their plans and take suitable action:

Apply for required licences (including UK EORI status) and confirm compliance with key industry regulations.
Review contracts in place with customers and suppliers to determine relative risk, and plan for any required changes to contracts.
Prepare for any changes to data reporting requirements and utilised IT systems.
Understand the forecasted impact of tariffs on their products.

We also provided ongoing support to the company over the course of the following months, advising on any further actions required as the political situation developed.