Glencore opts out of a New York listing, choosing to remain listed in London.
Glencore Keeps Primary Listing on London Stock Exchange
Glencore, the commodities trading giant, has announced that it will keep its primary listing on the London Stock Exchange (LSE), opting against a move to the United States. The company's CEO, Gary Nagle, confirmed the decision in a conference with analysts following the publication of its first-half 2025 results.
After a thorough review of various exchanges worldwide, Glencore found the U.S. capital markets to be the primary markets to explore. However, the company does not believe that becoming a U.S. domestic issuer or having a sponsored ADR program would generate shareholder value at this time.
Nagle highlighted that the company has made significant progress in optimizing its business and positioning for greater value-generating growth. He stated that London is where they are comfortable, and the US listing would not be "value-accretive" at this time. A key factor was uncertainty about inclusion in the S&P 500, which could reduce the company’s visibility to index funds, alongside significant costs associated with shifting the listing.
Glencore’s decision also stems from the fact that the LSE remains the best option for the company despite the broader trend of firms leaving London for the US, often motivated by higher valuations or lower capital costs. The company's choice reflects skepticism about potential valuation gains in the US market and loyalty to the London market, which has been struggling with some departures but retains strategic appeal for Glencore’s global operations.
The issue of Glencore’s potential relocation will remain a topic of future observation for the board and management. The UK market remains a solid platform for Glencore, and this commitment provides a boost to London’s financial markets amid concerns over a 'listing exodus'. However, investor reaction saw shares dip, as some anticipated valuation benefits from a US move.
In addition to its decision to stay in London, Glencore reported a net debt growth of 30%, to $14.471 billion (€12.517 billion) in the first half of 2025. The company recorded losses of $655 million (€566 million) in the same period, almost tripling the losses of $233 million (€201 million) from the same period in 2024. A thorough review of Glencore's industrial portfolio has identified opportunities to optimize the industrial operational structure and departmental management, with approximately $1 billion (€865 million) in recurring cost-saving opportunities across its various operational structures. More than 50% of these cost savings are planned for completion by the end of 2025.
Glencore's revenue for the first half of 2025 reached a total of $117.396 billion (€101.541 billion), representing a 0.3% increase from a year earlier.
Sources:
- Bloomberg
- Reuters
- Financial Times
- MarketWatch
- Amidst the first-half 2025 financial results, Glencore's CEO, Gary Nagle, acknowledged the company's significant progress in optimizing its business and notified analysts about their decision to maintain their primary listing on the London Stock Exchange due to uncertainty and potential costs associated with a U.S. listing and the belief that the move would not be "value-accretive" at this time.
- Despite the trend of firms leaving London for the US, Glencore's choice to remain in London also showcases the company's loyalty to the financial market that has been a strategic platform for their global operations, despite the London market struggling with some departures. However, the company's reported net debt growth and losses in the same period have raised questions about the long-term viability of this strategic decision.
