In another blow to the London Stock Exchange, one of the world’s biggest mining companies has revealed that it is considering whether to move its primary share listing away from London.

The news comes in the same week as figures showing an increase in shareholder activism against UK companies—largely driven by demands they “redomicile” elsewhere, particularly to New York.

Glencore’s chief executive, Gary Nagle, is reported in The Guardian as saying his board has a move under review.

“There have been questions raised previously around whether London is the right exchange. If there’s a better one, and those include the likes of the New York Stock Exchange, we have to consider that.”

A report from Diligent Market Intelligence this week shows that shareholder activism was up 28% in 2024 from 36 to 46 campaigns.

Diligent says in its report: “UK-based issuers were met with demands as activists questioned valuations seen to be significantly lower than US or global peers with many pressing their targets to redomicile to other jurisdictions.”

In December, the number of companies trading on the London Stock Exchange stood at 1,681, down from 2,055 in December 2019, and 2,459 in January 2015.

Dissatisfaction with an LSE listing appeared to reach its peak in 2024, with the Financial Times reporting that more than 88 companies delisted or transferred their listing during the year. This beat the previous record, set in 2009 immediately after the Financial Crisis.

‘LSExodus’

Some changes have taken place in an attempt to stem the “LSExodus”. Last year, the Financial Conduct Authority, with the approval of the chancellor Rachel Reeves, passed new measures softening the rules for dual-class shares (permitted for Premium listings in 2021), and removing the need for shareholder votes on significant transactions.

The moves were criticised by shareholder groups, but formed part of a general trend to make London listings more attractive, particularly to big tech companies where founders guard control.

Investors have since warned that opposition to dual class shares would grow worldwide. One pension fund, Railpen, has said it could vote against board chairs who fail to offer a shareholder vote on big transactions and dubbed reforms a “race to the bottom on corporate governance”.

The LSE’s problems are almost certainly part of a larger problem, which includes the liquidity available to invest in listed companies. There have been criticisms of UK pension funds for failing to allocate more of their investments to UK equities.

The government hopes reform of the Local Government Pension Scheme will go some way to fill the gap.

Meanwhile, there are those who expect departures from London to continue. A poll of Chartered Governance Institute members in September reveals that company secretaries see delistings continuing over the next five years.

The institute’s policy director, Peter Swabey, took aim at FCA reforms: “Rather than lowering the bar for new companies, the FCA needs to face the bigger issue: liquidity.”