Mining giant Glencore has abandoned plans to move its primary stock market listing away from London, delivering a welcome boost to the capital's financial markets. The Swiss miner, one of the largest companies on the FTSE 100, had been considering switching its main listing to New York since February.
The company announced alongside its half-year results that relocating from London would not provide better value for shareholders. Glencore cited the costs and complexities of becoming a US domestic issuer as key factors in the decision.
Cost-cutting drive targets workforce
However, the mining group warned of significant job losses as part of a sweeping cost reduction programme. Glencore is targeting savings of approximately one billion US dollars (£753 million) by the end of 2026, with more than half of these cuts to be implemented by December.
The redundancies will affect Glencore's global workforce of 150,000 employees as the company streamlines operations across energy, consumables, contractors, maintenance and administrative functions. The announcement comes as the firm grapples with challenging market conditions.
Financial performance under pressure
Glencore's underlying earnings dropped 14 per cent to 5.43 billion dollars (£4.09 billion) in the first half of the year. Net losses nearly trebled to 655 million dollars (£493 million), compared with 233 million dollars (£175 million) in the same period last year.
The company's primary listing remains in London, where it floated 14 years ago in a blockbuster initial public offering. Glencore is also listed on the Johannesburg Stock Exchange but maintains its main presence in the UK capital.
London market receives reprieve
In a presentation accompanying the results, Glencore acknowledged that whilst US capital markets offer unrivalled scale and depth, the benefits of switching would not justify the costs. The company said it would continue monitoring market developments and keep the possibility of relocation under review.
The decision provides relief for the London Stock Exchange, which has faced mounting pressure as several major companies consider moving their listings to more liquid markets in New York. Glencore's commitment to remain helps maintain London's status as a global financial centre.
(PA/London) Note: This article has been edited with the help of Artificial Intelligence.
