Swiss commodities trader Glencore said on Wednesday that it intends to maintain its primary listing in London, following earlier consideration of relocating to New York this year.
According to a report by the Financial Times, Glencore CEO Gary Nagle said on Wednesday that the company was skeptical about whether a move would deliver value to shareholders, as it was unlikely to have been included in the S&P 500 if it had shifted to New York.
“We don’t believe there is a value-accretive proposition to move exchanges right now,” Nagle said, after saying that the company had conducted a review of exchanges and found New York to be the most suitable candidate for a move.
Apart from the S&P inclusion, described as a “big factor” behind Nagle's decision, the company also considered the significant costs associated with a change, as per the report.
Retail sentiment on Stocktwits about Glencore was in the ‘bearish’ territory at the time of writing.
Glencore’s decision came as a relief for the London bourse, which has seen the departure of several high-profile companies, including chipmaker Arm and building materials supplier CRH, over the past few years.
According to a Bloomberg News report, London has lost 25% of its companies over the past decade following uncertainty over post-Brexit Britain and some calamitous policy moves that eroded investor confidence in the UK economy. Shell, the biggest company in the FTSE 100 index, has also explored a move away from London.
Separately, Glencore reported a 14% drop in first-half profit to $5.43 billion. Its copper production slipped 26% compared to the same period last year due to lower ore grades at several mines. The company plans to reduce costs by $1 billion by the end of the year.
Glencore U.S. shares have declined by over 10% this year amid a drop in coal price.
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