Glencore is considering moving its primary share listing away from London, a development that would be a fresh blow to the UK’s blue-chip stock exchange after a series of departures.
The chief executive of the mining group said it was studying whether a move would boost its shares – with New York top of the list of potential destinations.
“Ultimately, what we want to ensure is that our securities are traded on the right exchange where we can get the right and optimal valuation for our stock,” Gary Nagle told reporters.
“There have been questions raised previously around whether London is the right exchange. If there’s a better one, and those include the likes of the New York stock exchange, we have to consider that.”
Swiss-based Glencore has been listed in London since 2011, when the company was valued at about £37bn – at the time the largest-ever float on the London Stock Exchange. The listing made Nagle’s predecesssor, Ivan Glasenberg, one of Europe’s richest men, with a paper fortune of nearly £6bn. The company became known as a “millionaire factory”.
However, London has been hit by a string of high-profile exits, with many of the companies blaming declining liquidity and lower valuations as reasons for their departure.
If Glencore does go, it would be one of the largest companies to leave London, given its market value of more than £40bn. It would also be a significant blow because of the capital’s traditional standing as the global hub for mining companies.
Last year, 88 companies delisted from the London Stock Exchange or moved their primary listing from its main market. Just 18 listed during 2024.
The US has often been the destination for departing companies because it offers deeper capital pools and higher trading volumes.
Ashtead Group, a £27bn industrial equipment rental company, announced its plans to shift its primary listing to New York in December, saying the US was its natural home; about 98% of its profits are made across the Atlantic.
It joined companies such as Flutter, the £42bn owner of Paddy Power, the travel company Tui, and the food delivery company Just Eat, which all announced plans to switch their primary listings from London to rival hubs.
The UK’s blue-chip index has also missed out on some prominent flotations, including the buy now, pay later company Klarna, which filed for its much-anticipated flotation in the US.
A rare bright spot came in December, when the international pay-TV company Canal+ floated in London, in the largest new listing in two years. It was hailed as a “vote of confidence” for the UK’s capital markets by Rachel Reeves.
Glencore said it was considering its listing location as it reported a fall in underlying profits in 2024 for the second year in a row. Lower commodity prices were blamed.
Earnings slipped by 16% to $14.36bn (£11.41bn) last year, down from $17.1bn (£13.59).
The company was among the biggest fallers on the FTSE 100 on Wednesday, with its shares down by about 7%.
