What's happened
Ashtead Group, a major construction rental company, announced plans to shift its primary listing from London to New York, citing that 98% of its profits are generated in North America. This move reflects ongoing trends of UK companies seeking better opportunities abroad, further challenging the London Stock Exchange.
Why it matters
What the papers say
According to Kalyeena Makortoff in The Guardian, Ashtead's shift to a US primary listing is a significant blow to the London market, as it follows a series of high-profile exits. The company stated that the US is a 'natural long-term listing venue' due to its operational focus there. Meanwhile, BBC News highlighted that Ashtead plans to retain a UK listing but will primarily operate in the US, reflecting a growing trend among UK firms. Holly Williams from The Independent noted that Ashtead's profits are expected to be lower than anticipated due to market dynamics, further complicating its transition. Bloomberg reiterated that the decision is in the best interests of the business and its stakeholders, emphasizing the operational shift towards North America.
How we got here
Founded in 1947, Ashtead Group has been listed on the London Stock Exchange since 1986. The company has increasingly focused on US operations, leading to a significant portion of its profits and workforce being based in North America.
Common question
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