One of the world’s biggest miners has said it could quit the London Stock Exchange in a fresh hit to the UK’s unloved stock market .
On Wednesday, FTSE 100 giant Glencore said it was exploring plans to switch its primary listing from London, possibly to New York, to achieve a higher price tag for its shares.
The move would be a major blow for London’s beleaguered market, which has lost a wave of companies to the US because of low valuations and limited levels of trading.
Former FTSE 100 companies Ashtead, Paddy Power owner Flutter and travel company Tui have all ditched London over the past 12 months to move overseas.
The loss of Glencore would be particularly significant for London because it has long been touted as a success story for the UK’s capital markets. Its departure would likely raise fresh questions about the future of fellow mining and oil and gas companies such as Rio Tinto and Shell.
When it floated in 2011, Glencore was the London Stock Exchange’s largest ever public listing and earned the moniker “the billionaire’s factory” for making so many staff ultra-wealthy.
With a value of £40bn, Glencore is one of the 20 most valuable companies listed in London and would be the largest company yet to quit the exchange.
Gary Nagle, its chief executive, said: “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.
“There have been questions raised previously around whether London is the right exchange. We’re looking at all relevant exchanges that would make sense for Glencore.
“London is one where we are and where we’re happy but if there’s a better one, and those include the likes of the New York Stock Exchange, we have to consider that.”
Glencore operates primarily as a miner of coal and copper ore, making it heavily exposed to China and the global economy. It also operates as a trading company, buying and selling commodities.
Despite being headquartered in Baar, Switzerland, Glencore’s main oil head office is on Hanover Square in Mayfair, central London.
In a presentation to investors, Glencore said the “optimal location for our primary listing remains under study” and this would become a key priority for the year ahead.
Since taking power, Donald Trump has declared a new era of American pro-fossil fuels policies in the White House.
Mr Nangle said the decision to explore a US listing was unrelated to the new US administration or its policies.
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