The exodus of companies from the London Stock Exchange has reached its highest level in over a decade, raising fresh concerns about the UK’s appeal to investors.
According to Bloomberg data, 45 companies have delisted so far this year due to mergers or acquisitions, the highest number since 2010.
This trend coincides with mounting pressure on one of the Exchange’s largest players, Rio Tinto. Activist investor Palliser Capital has criticized the FTSE 100 mining giant’s dual Anglo-Australian structure, claiming it has cost shareholders $50 billion (£39.5 billion) and calling for an independent review of the arrangement.
Major deals driving the delistings include the acquisition of Keywords Studios by private equity firm EQT, Darktrace’s sale to Thoma Bravo, and Virgin Money’s takeover by Nationwide. Further significant transactions are anticipated, such as Czech billionaire Daniel Kretinsky’s purchase of Royal Mail owner IDS and Carlsberg’s acquisition of Britvic.
On Wednesday, another deal was announced: digital training company Learning Technologies Group accepted an £802 million bid from US investor General Atlantic.
These developments come amid growing sentiment that the London Stock Exchange is losing its attractiveness to major firms. Revolut CEO Nikolay Storonsky recently criticized the UK’s trading environment, labeling a London listing as “not rational.” Speaking on the 20VC podcast, he cited the 0.5% stamp duty tax on trading, questioning how the UK could compete with the US.
The figures exclude companies such as Just Eat and Flutter, which are shifting listings overseas or abandoning secondary listings in London.
Rio Tinto, currently valued at £80 billion and one of the UK’s top 10 listed companies, has a primary listing in London and a secondary listing in Australia, with dual headquarters in both countries.
