Ashtead, a FTSE 100 construction equipment rental giant valued at £27 billion, is planning to move its primary listing from London to New York, marking another significant loss for the London Stock Exchange. This decision follows similar moves by other major UK companies, raising concerns about the attractiveness of the UK market for large corporations.
Ashtead’s leadership stated that the US market is the company’s “natural, long-term listing venue,” citing access to deeper capital markets and better alignment with its core business operations. The move is expected to take 12 to 18 months, with Ashtead retaining a secondary listing on the London Stock Exchange’s international segment.
This announcement comes after The Telegraph initially reported on Ashtead’s potential move earlier this year, despite previous assurances from company executives regarding their commitment to the UK listing. Nearly all of Ashtead’s profits and employees are based in North America, driving the decision to prioritize a US listing.
The London Stock Exchange has faced a growing exodus of companies seeking larger investments in the US market. Recent examples include chip designer Arm’s Nasdaq listing and Just Eat Takeaway’s decision to drop its secondary London listing. Flutter Entertainment and Tui have also chosen listings on other international exchanges. Furthermore, the rate of companies leaving the London Stock Exchange due to acquisitions has reached a 14-year high.
Ashtead, the second-largest equipment rental company in the US operating under the Sunbelt Rentals brand, currently ranks between Lloyds Banking Group and Tesco in market capitalization on the FTSE 100. The company has significantly benefited from the “Inflation Reduction Act” and its green energy subsidies, particularly in areas like electric vehicle manufacturing and battery production. This shift to the US aligns with Ashtead’s strategic focus on capitalizing on these growth opportunities in the North American market.
This departure underscores the ongoing challenges faced by the London Stock Exchange in retaining major companies, particularly those with significant international operations. The trend of UK companies choosing US listings raises questions about the long-term competitiveness of the London market and its ability to attract and retain high-growth businesses.
