Glencore Scraps New York Listing Plan Over S&P 500 Inclusion Doubts, Will Stick With London: ‘Don’t Believe There Is A Value-Accretive Proposition’

The company also considered the significant costs behind a change in bourses.

Swiss commodities trader Glencore said on Wednesday that it intends to maintain its primary listing in London, following earlier consideration of relocating to New York this year.

According to a report by the Financial Times, Glencore CEO Gary Nagle said on Wednesday that the company was skeptical about whether a move would deliver value to shareholders, as it was unlikely to have been included in the S&P 500 if it had shifted to New York.

“We don’t believe there is a value-accretive proposition to move exchanges right now,” Nagle said, after saying that the company had conducted a review of exchanges and found New York to be the most suitable candidate for a move.

Apart from the S&P inclusion, described as a “big factor” behind Nagle's decision, the company also considered the significant costs associated with a change, as per the report.

Retail sentiment on Stocktwits about Glencore was in the ‘bearish’ territory at the time of writing.

Glencore’s decision came as a relief for the London bourse, which has seen the departure of several high-profile companies, including chipmaker Arm and building materials supplier CRH, over the past few years.

According to a Bloomberg News report, London has lost 25% of its companies over the past decade following uncertainty over post-Brexit Britain and some calamitous policy moves that eroded investor confidence in the UK economy. Shell, the biggest company in the FTSE 100 index, has also explored a move away from London.

Separately, Glencore reported a 14% drop in first-half profit to $5.43 billion. Its copper production slipped 26% compared to the same period last year due to lower ore grades at several mines. The company plans to reduce costs by $1 billion by the end of the year.

Glencore U.S. shares have declined by over 10% this year amid a drop in coal price.

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