Glencore’s U-Turn Sparks Fresh Optimism for the London Stock Exchange
The London Stock Exchange has scored a significant victory this week, as mining titan Glencore decided to ditch plans for a transatlantic shift to the US in a move that’s been hailed as a crucial win for the UK’s financial hub.
Earlier this year, Glencore, one of the Exchange’s heavyweights, boasting a valuation now sitting around £35bn, had sparked concern when it admitted it was weighing up a potential relocation of its primary listing to New York. The rationale? Possibly stronger valuations and deeper capital markets.
But the company’s latest financial results have brought a sudden change in direction.
“London is where we are happy,” Glencore chief executive Gary Nagle confirmed. “We don’t believe there is a value-accretive proposition to move exchanges right now,” he said, despite acknowledging “the scale and depth of US capital markets [being] unrivalled.”
The decision comes as a major confidence boost for the London Stock Exchange, which has seen an unsettling stream of big names, including Flutter and Tui, pack their bags for foreign markets. Meanwhile, others like Wise are reportedly eyeing the exit.
So what changed Glencore’s mind? Much of the hesitation reportedly came down to uncertainty over whether the company would be accepted into the prestigious S&P 500, the American counterpart to London’s FTSE 100.
Glencore currently ranks 26th on the FTSE by market cap, a standing it may not have matched stateside.
Plus, the logistics and financial implications of switching markets were described as “significant.” Not an easy pill to swallow during a time of belt-tightening.
In the same breath as announcing its stay in London, Glencore revealed a $1bn (£753m) cost-cutting plan. The firm has also reported net losses of $655m (£493m) amid slumping commodity prices and dwindling output.
A few hundred roles are expected to be cut globally, a fraction of its 150,000-strong workforce, as the company looks to reduce expenses.
Net debt has climbed too, hitting $13.5bn (£10.2bn), notably above its $10bn target. Investors haven’t reacted well. Glencore shares slid by 3.8% in Wednesday morning trading and are down 18% so far in 2025.
The firm was worth closer to £40bn when its listing review was first announced, highlighting a 12.5% drop in market value since the news broke.
For the London Stock Exchange, though, this is a rare piece of good news amid a challenging period. LSEG’s CEO, David Schwimmer, has repeatedly pushed back against the idea that moving to Wall Street guarantees bigger wins for shareholders.
He cited data showing that only around 20% of UK firms that shifted to the NYSE over the past decade delivered shareholder gains.
And this week, Mr Schwimmer echoed those points once again, telling Yahoo Finance that the LSE remains competitive, a message that appears to be supported by Glencore’s climbdown.
For now, at least, the London Stock Exchange holds onto one of its largest players. A much-needed morale boost at a time when every headline counts.
