Glencore Considers Relocating Primary Listing Amid London Exodus
London, UK - Mining giant Glencore Plc is exploring the possibility of moving its primary listing away from London, following the recent trend of major corporations departing the former industry hub.
"Our aim is to ensure that our securities are traded on the exchange where we can obtain the best valuation for our stock," said Glencore CEO Gary Nagle. "Questions have been raised about London's suitability as that exchange."
Glencore's initial public offering (IPO) on the London Stock Exchange in 2011 was the largest at the time. The company has announced a review of the optimal location for its primary listing.
Glencore joins a growing number of multinational companies considering a London exit, attracted by deeper capital pools, higher valuations, and increased investor appetite for fossil fuels in the United States. Shell Plc contemplates a move to the US, while Rio Tinto Plc faces pressure to consolidate its London listing and focus on Australia. BHP Group Ltd. has already made such a transition.
London has lost 25% of its listed companies in the last decade, and Glencore's departure would be another blow.
The company's evaluation follows its acquisition of a majority stake in Teck Resources Ltd.'s coal business in 2023. Glencore has proposed creating a new company to list the combined coal operations on the New York Stock Exchange (NYSE). Data from mutual funds indicates greater support for fossil fuel companies in the US market.
Nagle emphasized that the review is unrelated to the new US administration's stance on fossil fuels. "We are considering all relevant exchanges that may be suitable for Glencore," Nagle said. "London is one, but if there is a better option, including the NYSE, we must consider it."
Despite the global decline in coal prices, US investors have become more receptive to the sector as President Donald Trump has prioritized fossil fuels in his energy policy.
"We believe that a relocation to the US would positively impact Glencore's share price if it chooses to pursue that path," said Jefferies LLC analyst Christopher LaFemina.
In 2022, BHP moved its main listing to Sydney, Australia, after operating a dual arrangement with London. The majority of BHP share trading already occurred in Australia.