A host of household names could quit the stock market in a £600billion 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 the firms – which also include Compass, Experian, Bunzl, Smith & Nephew, Rentokil and Fresnillo – is £620billion.
No respite: A host of household names could quit the stock market in a £600billion exodus from London, which would be a blow to Rachel Reeves
‘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 £73billion, have ruled out moving to New York. But it is feared an exodus by other top firms could see them change their mind.
CRH, Flutter, Indivior and Ferguson have made the switch while Ashtead and Wise are in the process of moving. Coatsworth said there is a list of UK firms that could ‘make a good argument for switching their main stock listing to the US.’
He added: ‘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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Fears of £600bn stock market exodus to New York