Could more blue chip firms join the FTSE exodus?

Daily Mail​

14 hours ago

British businesses worth more than half a trillion pounds in total could quit the stock market, analysts have warned.
At least ten of the biggest companies in the blue-chip FTSE 100 index are thought to be at risk of leaving the London Stock Exchange (LSE), either by being taken over or moving overseas, particularly to Wall Street.
Among them is the £158 billion drug giant AstraZeneca, the UK's largest quoted company, which sparked alarm last week after reports emerged that it was considering shifting its main listing to the US.
Other stock market giants may also be considering an exit strategy within the next three years, experts say. They include British American Tobacco, the £77 billion owner of cigarette brands Pall Mall and Lucky Strike. Its value could 'more than double if it switched its stock market listing to the US', said Dan Coatsworth at investment platform AJ Bell.
Others that may be mulling a switch include credit data firm Experian, which makes two-thirds of its sales in North America, and food packager Bunzl.
Hip replacement maker Smith + Nephew would also be a 'logical candidate' for moving to the US, where it generates more than half of its sales, said Coatsworth.
Flutter, whose gambling brands include Paddy Power, and Tarmac owner CRH are among a number of well-known firms to have left the London market for New York in search of a higher valuation for their shares.
'These potential uplifts highlight the sharp discounts that exist with UK stocks, even among companies that are household names,' Coatsworth added.
Last year, it emerged that oil giant Shell, worth £155 billion, was considering a move to New York. Its boss, Wael Sawan, claimed the company was 'undervalued' compared with its US rivals such as Chevron and ExxonMobil, which are worth $258 billion (£189 billion) and $479 billion (£351 billion) respectively.
Meanwhile, rival energy giant BP is also considered to be at risk of leaving the market as its struggling share price, which has fallen more than a fifth in the past year, has fuelled speculation that it could be a takeover target for Shell or an overseas predator.
Diageo, the owner of brands including Guinness, Smirnoff vodka and Johnnie Walker whisky, has also been the subject of takeover speculation.
The future of the mining sector on the London market is also increasingly in doubt.
In February, Gary Nagle, the boss of the £37 billion commodities giant Glencore, said the group was weighing up whether to ditch its listing on the LSE and move elsewhere.
A company spokesman told The Mail on Sunday that the location of the miner's listing was still under review.
Meanwhile, copper giant Rio Tinto, worth £54 billion, is under pressure from some of its investors to ditch London and shift its main listing to Australia following rival BHP, which performed a similar move in 2022.
The company has so far rejected calls for a move, with only 19 per cent of shareholders backing a motion to transfer to the Australian stock market at its annual meeting in April.
City broker Peel Hunt has warned that the situation presented 'a significant challenge for the UK economy' in terms of jobs and taxes. Others have called for the Government to take urgent action to boost Britain's attractiveness on the world stage.