A host of household names could quit the stock market in a £600 billion exodus from London, analysts have warned. AstraZeneca, Shell, BP, and Rio Tinto are among those seen to be ‘at risk’ of moving their main listings to New York in what would be a devastating blow to the City.
Analysis by broker AJ Bell identified ten London-listed firms that do so much business in the US, or have so many shareholders there, that they may be tempted to make the switch. The combined value of these firms—which also include Compass, Experian, Bunzl, Smith & Nephew, Rentokil, and Fresnillo—is £620 billion.
“An onslaught of UK-listed companies upping sticks for the US would be terrible for the reputation of the London market,” said Dan Coatsworth at AJ Bell.
Miners Glencore and Anglo American, worth a combined £73 billion, have ruled out moving to New York. However, there are fears that an exodus by other top firms could prompt them to change their minds.
Several companies have already made the move, including CRH, Flutter, Indivior, and Ferguson, while Ashtead and Wise are in the process of relocating their primary listings to the US.
Coatsworth added, “There is a list of UK firms that could make a good argument for switching their main stock listing to the US. The more companies that move, the more the topic will be discussed in the boardroom by other companies that have a US presence.”
The latest bout of anxiety about an exodus comes after AstraZeneca last week announced plans for a full listing in New York alongside London, sparking fears it could lead to a permanent move.
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