The UK Treasury is engaging in discussions with Revolut, a leading fintech firm, to entice the company to list in London. This comes amidst Revolut’s consideration of a New York listing, highlighting the competitive landscape for attracting major companies.
The London Stock Exchange has witnessed a significant outflow of companies in recent times, with a total of £95 billion worth of businesses leaving the exchange so far this year. This trend is driven by a combination of acquisitions and listings moving overseas, leading experts to express concerns about the future of the UK market. The departure of companies from the London market has been attributed to various factors, including relatively low valuations compared to other exchanges, such as New York. Some of the notable companies that have exited or are considering leaving include Anglo American, DS Smith, and potentially Shell. This exodus has raised concerns among city experts, who fear that the London market is losing its competitiveness and attractiveness to investors. As a result, there have been calls for measures to restore the competitiveness of the London market, such as removing stamp duty, reforming pensions, and introducing a British ISA.
Mining giant BHP is in talks to acquire London-listed miner Anglo American in a potential mega-deal that would significantly reshape the global mining landscape. Anglo American has been considered a potential takeover target due to its weak production forecasts and declining share price. The acquisition would give BHP the largest share of global copper production, boosting its exposure to low-cost, long-life assets in iron ore and metallurgical coal. However, analysts caution that such complex transactions often carry the risk of value destruction. The deal is contingent on Anglo American divesting its South Africa-based platinum and iron ore divisions. Analysts believe the deal highlights concerns about an exodus from the London Stock Exchange, potentially shrinking the UK-listed large-cap mining sector but also changing its perceived industry breakdown.
UK equities closed lower on Wednesday due to losses in the Chemicals, Fixed Line Telecommunications, and Real Estate Investment Trusts (REITs) sectors. The Investing.com United Kingdom 100 index declined by 0.06%. Among the top gainers were Anglo American (up 4.45%), Reckitt Benckiser (up 2.92%), and Rio Tinto (up 2.50%). The most significant losers included Croda International (down 4.79%), Ocado Group (down 3.49%), and Entain (down 3.31%).
