London over and out: CRH confirms New York listing swap after ‘strong support’ from shareholders
Building supplier CRH said it will press ahead with plans to ditch its London listing in favour of New York today, confirming a major blow to the City as it scrambles to revive the appeal of its capital markets.
CRH, which makes a major chunk of its revenues in the US, announced last month that it was looking to swap from London to a primary listing in New York in order to tap into more “commercial, operational and acquisition opportunities” in the US
The news was seen as a major snub to the City amid fears that London was losing ground on international competitors as a listings destination.
CRH said today it had “engaged extensively” with shareholders and had got “strong support” for the move.
“We believe a US primary listing will bring increased commercial, operational and acquisition opportunities for our business, further accelerating our successful integrated solutions strategy and delivering even higher levels of profitability, returns and cash for our shareholders,” the firm said.
Policymakers and regulatory officials have been looking to breathe life into London’s markets amid fears that growing firms are looking overseas to better attract cash from investors.
A slew of reviews have been launched to overhaul the regulatory frameworks around the public markets, with the latest review into investment research launched by ministers earlier this year.
Ministers have also commissioned deep dives into listing rules and the UK’s secondary markets over the past three years to ease the way that firms can float and raise cash.
London has been dealt a series of blows in recent months however, with chipmaker Arm snubbing London in favour of New York despite a lobbying campaign from ministers and regulators.
CRH’s confirmation today came as the firm reported a “positive” start to the year with first quarter sales and earnings ahead of guidance.