Just Eat Takeaway, the food delivery behemoth, has announced plans to delist its shares from the London Stock Exchange (LSE), dealing another blow to Britain’s reputation as a business-friendly hub under the Labour government.
The move underscores growing concerns that both small and large businesses are increasingly disillusioned with the UK’s economic and regulatory climate now Labour are in power.
The company, which will maintain its primary listing on Amsterdam’s Euronext exchange, cited the “administrative burden, complexity, and costs” of dual listings as key factors behind its decision. Just Eat also pointed to low trading volumes and liquidity on the LSE as contributing to the exit.
In a statement released today, the firm said:
“Following this review, the company hereby gives notice that, in order to reduce the administrative burden, complexity and costs associated with the disclosure and regulatory requirements of maintaining the LSE listing, and in the context of low liquidity and trading volumes of the Shares on the LSE, it has requested that the FCA cancel the listing of the shares.”
The decision is particularly striking given Just Eat’s past support for the LSE. After its 2020 merger with US-based Grubhub, the company had chosen to retain its UK listing and abandon its American one, seemingly signaling confidence in London’s financial markets.
Yet, just two years later, the firm reversed course, with today’s announcement marking the end of its London chapter. Shareholders are now being advised to consult their brokers on converting holdings to the Amsterdam-listed shares.
This latest move adds to the UK stock market’s woes, with the LSE struggling to maintain its attractiveness to both tech firms and global corporations. Once heralded as a major success story for the London market, Just Eat’s £1.5 billion float in 2014 had been the biggest tech IPO in eight years.
However, subsequent mergers with Dutch company Takeaway.com and Grubhub created a complex web of multiple listings, which the company now seems eager to streamline. Following the Takeaway merger, Just Eat’s Amsterdam listing gained prominence, with the company’s headquarters ultimately moving to the Dutch capital.
Critics argue that the Labour government’s regulatory environment has made the UK less appealing to businesses. As Just Eat packs its bags, it’s another high-profile name leaving the UK markets, adding to concerns about the country’s ability to compete on the global financial stage.
With Just Eat’s departure, the debate over whether London can maintain its status as a world-class financial hub under Labour’s leadership continues to rage. For now, Amsterdam appears to be the big winner.
