Glencore Considers Primary Listing Move from London to New York or Other Exchanges
Glencore (LON: GLEN), the global mining and commodity trading giant, is evaluating the possibility of relocating its primary stock listing from London to a different exchange, possibly New York, in search of a more favorable valuation. The move could deal a significant blow to the London Stock Exchange.
Chief Executive Gary Nagle confirmed the company, which has been listed in London since 2011, is assessing whether another exchange might be more suitable for its securities.
Nagle emphasized the importance of securing “the right and optimal valuation,” stating, “We want to ensure that our securities are traded on the right exchange. If there’s a better one, and that includes the New York Stock Exchange, we have to consider that.”
The London Stock Exchange has seen a series of high-profile companies depart in recent years. With a market capitalization of £40 billion ($50 billion), Glencore ranks among the top 20 most valuable companies listed on the exchange, and its exit would mark the largest yet. In 2024 alone, 88 companies either delisted or moved their primary listing from London, with only 18 new listings filling the gap.
In 2022, BHP (ASX: BHP), the world’s largest mining company, downgraded its London listing to a secondary one. Meanwhile, Rio Tinto (LON, ASX: RIO), the second-largest mining company globally, is considering shifting its primary listing from London to Sydney after facing pressure from investor Palliser Capital. The company is currently reviewing its options.
Glencore had previously considered spinning off its coal business and listing it in New York, where market conditions were seen as more favorable. According to Deutsche Bank data, 48% of European mutual funds exclude coal investments, compared to less than 1% in the United States.
However, the Baar, Switzerland-based company ultimately decided against this plan last year and chose to retain its coal assets within the group.
Nagle clarified that the company’s review of its listing options is unrelated to policies under the new U.S. administration or its stance on fossil fuels. “We’re looking at all relevant exchanges that would make sense for Glencore,” he said.
Glencore Reports Loss Amid Market Challenges
The potential shift in listing comes as Glencore reported a substantial loss of $1.6 billion for 2024, a stark contrast to the $4.3 billion profit reported in 2023. The loss was driven by significant impairments, including a $1.5 billion write-down on zinc and copper smelting assets and a $600 million impairment related to its South African coal operations.
Despite the loss, Glencore’s revenue for 2024 increased by 6% to $231 billion. However, its adjusted earnings before interest, taxes, depreciation, and amortization (EBITDA) declined by 16%, totaling $14.4 billion.
BMO analyst Alexander Pearce noted that despite the impairments, Glencore’s shareholder returns exceeded expectations, reaching $2.2 billion. This represents an annualized yield of 4.1% and includes $1 billion from the upcoming closure of the Viterra sale.
Looking ahead, Glencore’s guidance remains broadly unchanged through 2027, although Pearce warned that copper production in 2025 may fall short of expectations.
