A standoff between Prime Minister Theresa May and the European Union (EU) over a Brexit delay has put the prospect of a cliff-edge departure back in play for British companies.

“If you're a business now thinking no-deal was off the table,” Wednesday's events “will be a bit of a shocker,” says Mats Persson, head of Brexit strategy at EY in London. “If the EU doesn't grant Parliament an extension, no-deal happens.”

May asked the EU for a three-month delay of the Brexit deadline to June 30. While she'll make her case to EU leaders at a summit Thursday, European Council President Donald Tusk said such a short extension would be possible only if the U.K. Parliament agrees to enact the existing divorce deal—which it's twice rejected—by the current exit day of March 29.

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