US Acquisitions Spark Concerns Over London's Market Stability
Foreign predators' secondary listing plans in the UK are met with skepticism, as the city grapples with the potential loss of major firms.
Plans by two U.S. companies to establish secondary listings in London following their acquisitions of British businesses have been met with criticism, with some experts describing the move as a "barely a consolation prize."
New York-listed McCormick is reportedly planning a lesser listing in London after acquiring Unilever's food business, which includes brands such as Hellmann's, Marmite, and Colman's, in a transaction valued at £12 billion. Similarly, Prologis is considering a secondary listing in the UK after its £14 billion approach for the FTSE 100 warehouse and data center firm Segro received board approval. Segro's shares saw a 6.5% increase following the announcement, reaching 953.2p per share after the company accepted Prologis's final offer.
These developments have amplified concerns that London is losing significant companies to foreign entities that are acquiring them at relatively low prices. Segro marks the fifth, and largest, FTSE 100 company to agree to a takeover this year. Previous acquisitions of major UK firms include Intertek, a lab testing firm; Beazley, a Lloyd's of London insurer; City institution Schroders; and energy group DCC.
Charles Hall, head of research at broker Peel Hunt, expressed his view that secondary listings by foreign buyers offer minimal advantage to the UK. "If the businesses are not in the FTSE indices, most UK funds will sell," Hall stated. "So London Stock Exchange Group might like it, but it is of little advantage to the UK."
In a separate development offering a potential boost to the City, Airtel Africa announced it has chosen the London Stock Exchange for the listing of its mobile money business, Airtel Money. The company aims to list its third-largest unit in the latter half of 2026, a timeline adjusted due to war-related cost pressures. Airtel Africa's chief executive, Sunil Taldar, believes a London listing will provide access to a broad international investor base and support the company's objective to realize the long-term value of its fintech platform.