Equiment hire giant Ashtead to move stock listing to US
Equipment rental giant Ashtead plans to move its main stock market to the United States, dealing a fresh blow to the London Stock Exchange.
The company said the U.S. was a “natural long-term listing location” because most of its profits are in North America, as are its bosses, headquarters and most of its employees.
Ashtead is the latest of several major companies to delist from the London Stock Exchange in recent years. May denied it was in crisis.
Ashtead said the proposed move would be discussed with shareholders before taking a vote.
The company aims to move its primary listing to the United States within the next 12 to 18 months, but will remain listed in the United Kingdom as an international company.
The company primarily rents construction equipment and has more than 25,000 employees.
Ashtead said annual profits will be lower than expected due to “dynamics in the local U.S. commercial construction market,” which will impact rental sales growth.
Over the past few years, companies worth hundreds of billions of pounds have exited the London Stock Exchange for the United States, raising concerns about the attractiveness of British investment.
These include Cambridge-based microchip giant ARM Holdings, which is currently selling its shares in New York, and Paddy Power owner Flutter.
