In a rare win for the London Stock Exchange, commodities giant Glencore has confirmed it will retain its primary listing in the UK, scrapping a potential move to New York despite months of speculation.
CEO Gary Nagle announced on Wednesday that the company had conducted an in-depth global review and determined that relocating its primary listing to the United States would not deliver added value for shareholders at this time. “Having done that thorough analysis, we will remain listed in London for the moment,” Nagle said, adding the situation would remain under review.
The decision is a boost for London’s capital markets, which have struggled with sluggish IPO activity and a wave of departures from high-profile firms like TUI, Just Eat Takeaway, and BHP. London’s equity market has been shrinking amid concerns about undervaluation and a more favorable investor base overseas.
Nagle also addressed recent speculation that a US move could help boost Glencore’s stock, which is down 26% over the past year. He attributed the decline largely to falling coal prices, not the listing venue. He also noted that inclusion in the S&P 500 – a key appeal for many firms considering a US move – was unlikely in Glencore’s case, diminishing the potential upside of relocating.
While London’s financial ecosystem welcomed the news, some investors were left disappointed, with Glencore shares falling 4% following the announcement. Legal & General CEO Antonio Simoes urged the UK government to accelerate listing reforms to ensure the country remains an attractive hub for global investment.
Meanwhile, other major firms such as Shell and Pearson remain under pressure to consider transatlantic moves, amid growing competition between financial centres.
