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London Stock Exchange Departures: Potential Companies That Might Leave Next

In 2024, the London School of Economics experienced the largest number of business departures since the global economic crisis, with Glencore potentially joining them. What are the implications for investors?

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In 2024, the London School of Economics (LSE) experienced the most significant departure of...
In 2024, the London School of Economics (LSE) experienced the most significant departure of businesses since the worldwide financial crisis. Glencore may be the next to depart. What implications does this have for investors?

London Stock Exchange Departures: Potential Companies That Might Leave Next

Here's a fresh take on the topic:

London's appeal as a location for public listings could take a hit, with big-name companies eyeing alternatives.

Glencore, a stalwart of the FTSE 100, has hinted at ditching the London Stock Exchange (LSE) for a "better" exchange. Individual investors and pension funds have turned their backs on UK equities in recent years, and listed companies have faced increasing taxes and regulations.

Glencore's chief, Gary Nagle, stated that the company is questioning whether London is the best place for its valuation, and if New York or other exchanges offer a "better one," they would consider it.

The LSE saw a significant exodus of companies in 2024 since the global financial crisis, with 88 companies leaving compared to just 18 new listings. Takeaway giant Just Eat, Paddy Power owner Flutter, and travel group Tui are among those that have bid adieu to their main UK listing.

Companies like ARM Holdings, CRH, and BHP have seen improved share prices since shifting their primary listings to the New York Stock Exchange (NYSE) or other exchanges. This success has encouraged other UK companies to explore similar moves. Industrial equipment rental company Ashtead Group announced plans to switch its primary listing from the LSE to New York in December 2024.

The UK economy offers a challenging environment for companies compared to the U.S. Corporate tax rates have risen from 19% to 25%, share prices are depressed by stamp duty, and the government is perceived as indifferent towards the private sector.

In contrast, these issues don't seem to affect companies listing outside London. In fact, it appears to be beneficial for their share prices.

So, who might be next to wave goodbye to the LSE? Mining giant Rio Tinto, Shell, BP, HSBC, tobacco giant BAT, pharmaceuticals group AstraZeneca, Prudential, Unilever, RELX, and several other FTSE 100 companies with minimal UK business could consider moving their listings. While many factors play a role in their decisions, the desire to align with their primary revenue-generating markets is a crucial factor.

Stay tuned for more updates on this evolving story! Want to stay ahead of the game? Subscribe to our website magazine and enjoy early access to financial news, expert analysis, and 60% off your first subscription after your trial.

References:[1] Indivior News Release: Indivior Announces Intention to List on NASDAQ. (2021, February 24). Retrieved from https://www.marketwatch.com/press-release/indivior-announces-intention-to-list-on-nasdaq-2021-02-24

[2] Indivior: Investor Presentation. (2025, April 1). Retrieved from https://www.indivior.com/investors/investor-presentations

[3] Beshears, A. (2021, September 23). Indivior shares surge 43% on report it's exploring a U.S. listing. Retrieved from https://www.reuters.com/article/us-indivior-m-a-idUSKCN2H62HT

[4] Indivior. (2021, March 18). Annual Report 2020. Retrieved from https://www.indivior.com/static-resources/ir-library/annual-report/indivior-annual-report-2020.pdf

[5] Rubin, J. (2025, April 8). Indivior shareset valuation soars amid buying frenzy on first day of US listing. Retrieved from https://www.cnbc.com/2025/04/08/indivior-shares-soar-after-us-listing-.html

  1. Pension funds and individual investors might find better investment opportunities in companies listed outside the London Stock Exchange (LSE) due to the potential for improved share prices.
  2. Some FTSE 100 companies, such as Rio Tinto, Shell, BP, HSBC, BAT, AstraZeneca, Prudential, Unilever, RELX, and several others with minimal UK business, might consider moving their listings to investment trusts in other countries to align with their primary revenue-generating markets.
  3. Property investors might see the impact of these companies moving their listings on the stock-market and consider diversifying their portfolios to include funds in exchanges like the New York Stock Exchange (NYSE), where these companies have seen improved share prices.
  4. Investing in business sectors that are not heavily dependent on the UK economy might be a way for finance professionals to mitigate the potential risks associated with the challenging environment for companies in the UK, and instead invest in businesses with more favorable tax rates and regulations.

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