Glencore halts intent to transition primary stock exchange to London
Glencore Abandons Plans to Move Listing from London to New York
In a surprising turn of events, mining and commodities giant Glencore has announced that it will not be moving its primary listing from the London Stock Exchange to New York, as initially planned. The company's CEO, Gary Nagle, stated that a move to the U.S. would not be "value accretive" for shareholders at this time.
The key reasons behind this decision include uncertainty over inclusion in the S&P 500 index, high costs of moving the listing, valuation considerations, and the context of market challenges.
Inclusion in the S&P 500 index is crucial because it provides access to large amounts of investor cash from index funds that track the S&P 500. However, Glencore assessed it was unlikely to be included in the S&P 500 if it moved to New York.
The expenses involved in relocating the primary listing were also considered significant and did not justify the move. While Glencore had been exploring New York in search of stronger valuations given its declining share price and operational challenges, CEO Nagle said the company was “happy with” London and did not see an advantageous valuation proposition from switching exchanges currently.
The company has faced declining production, slumping coal prices, and an earnings miss in the first half of 2025, which contributed to the initial consideration of moving listings to boost its share performance. However, production remains on target, according to Glencore.
The operational review of Glencore's portfolio has uncovered several efficiency opportunities. The review is expected to result in approximately $1 billion of recurring cost savings by the end of 2026, with more than 50% targeted for the end of 2025.
The decision to remain in London also provides a boost to the UK market, which has experienced the departure of several high-profile multinational companies in recent years.
In other news, Glencore has completed its sale of former agricultural investment Viterra to Bunge, receiving $900 million in the process. The company has also reiterated its guidance for the rest of the year.
Shares in Glencore are down 16.7% this year, despite rival miners like Fresnillo and Antofogasta being among the FTSE 100's performers. The company recently reported a miss in earnings estimates for the first half of 2025.
[1] BBC News, "Glencore scraps plans to move London listing to New York", 2025 [2] Reuters, "Glencore abandons New York listing plan", 2025 [3] Financial Times, "Glencore drops plan to relocate to New York", 2025 [4] The Guardian, "Glencore ditches plans for New York listing", 2025 [5] Sky News, "Glencore abandons plans to move to New York Stock Exchange", 2025
- In light of the company's decision to maintain its primary listing in London, the move could have significant implications for the UK financial industry, as it may potentially attract more multinational companies to list in the London Stock Exchange.
- Despite Glencore's decision not to move to the New York Stock Exchange, the company is still actively focusing on improving its financial performance, as evidenced by the operational review aimed at achieving approximately $1 billion in recurring cost savings.
