The London Stock Exchange (LSE) is experiencing its worst exodus of companies in over a decade, with a staggering 45 businesses recently delisting.
Another one of the UK’s most prominent blue-chip companies has just announced plans to shift its primary listing from London to New York, delivering a hammer blow to the embattled London Stock Exchange.
Ashtead, the FTSE 100 construction equipment rental giant, has revealed it sees the US market as its “natural, long-term listing venue,” citing the deeper capital markets and alignment with its North American business operations.
With a staggering £27bn valuation, Ashtead’s move marks one of the most significant departures from the Square Mile in recent months. The announcement follows hot on the heels of Just Eat Takeaway’s decision to abandon its secondary London listing.
Labour’s Anti-Business Policies Under Fire
Critics have pointed to Labour’s tax hikes, increased regulatory burdens, and perceived hostility toward enterprise as major factors driving businesses away. Despite promises to revitalise the UK economy, Labour’s policies have been accused of strangling growth and innovation, with Ashtead’s decision serving as a stark example of the consequences.
Liz Truss, the former Prime Minister, recently warned of the dangers of Labour’s approach, describing their policies as a “direct attack on the UK’s ability to compete globally.”
US Move in “Best Interests” of Business
Ashtead’s leadership justified the decision as being in the “best interests of the business and its stakeholders.” The company’s operations are heavily weighted toward North America, where it generates 98% of its profits and employs the majority of its workforce under the Sunbelt Rentals brand.
While the company plans to retain a UK listing on the international companies segment of the London Stock Exchange, the shift to New York is expected to be completed within the next 12 to 18 months.
Another Blow to the Square Mile
Ashtead’s departure comes at a critical time for the London Stock Exchange, which has seen a worrying trend of major companies heading overseas. Recently, Cambridge-based chip designer Arm snubbed London for a Nasdaq listing, and other corporate heavyweights like Flutter, the owner of Paddy Power, and Tui, Europe’s largest travel company, have made similar moves.
Cybersecurity firm Darktrace also left the London market earlier this year after being taken private, while the number of takeovers of London-listed companies has surged to a 14-year high under the new Labour Government.
Ashtead’s US Ties
Ashtead’s pivot to the US market reflects its deep integration into the American economy. The company has seen significant growth thanks to Joe Biden’s Inflation Reduction Act, which offers substantial green subsidies. Ashtead’s chief executive previously highlighted the company’s success in securing contracts related to electric vehicle manufacturing plants and battery gigafactories in the US.
A Worrying Trend for UK Markets
The shift of high-value companies like Ashtead is reigniting concerns about the competitiveness of London’s financial markets. Despite the government’s efforts to bolster the City’s appeal, the allure of deeper capital markets, more favourable regulatory environments, and the sheer scale of investment opportunities in the US continue to draw British businesses across the Atlantic.
Ashtead’s decision underscores the urgency of addressing these challenges, as the UK risks losing its position as a global financial hub.
With Ashtead’s departure, the FTSE 100 will not only lose one of its star performers but also face renewed questions about its ability to retain and attract top-tier companies in an increasingly competitive global market.
