Concerns are rising that one of the biggest business casualties of the U.K.'s decision to leave the European Union is the planned Deutsche Boerse merger with the London Stock Exchange.
"It's an interesting situation, it's pretty unique," said the head of M&A at Panmure Gordon, Karri Vuori, to CNBC.
Despite assurances from the German group, the Financial Times reported that backers of the $30 billion deal were worried it will be blocked by German authorities opposed to the combined entity being based in London -- and therefore possibly outside the EU.
"Politics is the key driving force behind this… comments from Bafin, the German [financial] regulator, over the last few days about them not being happy that the largest Euro clearing house is outside of the EU, and there are also further concerns around the headquarters of the combined business being U.K. domicile, once again outside of the EU," explained Vuori.
"The German regulator is crucial for a deal to get done but only in terms of authorizing the existing overriding structure of the business rather than having a say on whether it's a good deal or bad deal or whether it should go ahead."
The Brexit decision will "unlikely overall" affect the sector, however.
"There are a few things that will change… the availability of debt will become slightly less in quantum, the price of debt will probably increase slightly as risk appetite decreases," said Vuori, speaking on Thursday.