Glencore has decided against moving its main listing from London to the United States. The company reiterates its commitment to London Stock Exchange, in spite of the recent struggle to keep large multinational companies.
This announcement was made by the Swiss commodities miner and trader on Wednesday. It came alongside a report that showed a significant increase in net losses for the first six months of 2025, and an initiative to cut costs of $1 billion which will result in widespread job reductions.
This decision provides temporary relief to the UK’s market which, in recent years, has seen a steady flow of companies leaving.
In search of higher valuations and greater investor interest, firms such as Arm Holdings or Flutter Entertainment chose to list their companies in New York.
Glencore, a major company in the FTSE 100 index, has sparked speculation after stating that it would be reviewing the listing of its stock.
In a Wednesday call with reporters, Gary Nagle, chief executive of the company said: “London is our happy place.”
We don’t think there’s a proposition that adds value to exchanges at this time.
Nagle confirmed Glencore’s review of alternative exchanges, and that New York was the best option. However, the company decided the uncertainty surrounding S&P 500 inclusion as well as the cost associated with such a change did not warrant the move.
The firm will continue to assess its options and be ready for any future changes, he said.
Glencore’s shares fell by over 20% in the last year. Some analysts believe that the switch to US markets could have been a catalyst for growth.
Earnings are impacted by steep impairment and declining production
After announcing lower-than-expected results in the first six months of this year, the decision was made to keep the London-listed company.
Glencore posted a loss net of $655 millions, a sharply higher figure than its $233 million loss during the same time period in the previous year.
Analysts expected a return of profitability. Estimates pointed to a profit net of $337 million.
This disappointing result was largely due to a $900m impairment charge on the Cerrejon thermal mine of Colombia. The company has suffered from reduced production as well as lower coal prices globally.
Glencore has seen its core earnings suffer as coal prices have fallen since the Ukraine War.
Copper production fell by 26% in the last year due to lower grades of ore and challenges with various sites.
Glencore plans to make up the difference in the second quarter of this year.
The company’s EBITDA adjusted for the first six months fell by 14%, to $5.43billion. This was below analysts’ estimates of $5.56billion.
The company’s Industrial Division, which includes its mining operations, saw a decline of 17% in earnings to $3.8 billion.
As debt increases, cost cuts will hit the workforce
Faced with pressure from investors to return profitability, Glencore announced a restructuring plan worth $1 billion that would result in hundreds of job cuts among its global workforce of 150,000.
This initiative should be complete by 2026.
According to the company, the aim is to increase operational efficiency as well as better align business operations with the current market reality.
As a result, the miner’s net adjusted debt increased from $10 billion to $13.5 billion. This is above their stated goal of $10 billion and raises concerns over its balance sheet.
Following the announcement, Glencore shares fell by 3.5% in London’s early trade to 290.04pence.
Analysts say that while the UK may be reassured by Glencore’s decision to stay listed in London, its performance problems are not over.
Analyst Christopher LaFemina at Jefferies described the results of the company as “weak”. He pointed out that the debt was higher than expected and the impairments were also above expectations. These factors will continue to affect investor sentiment.
The company will continue to maintain its London headquarters, but a recovery of commodity prices and improved operational performance is likely needed in order to restore investor confidence and revert the recent decline in share price, which exceeded 20% during the last 12 months.
As new information becomes available, this post Glencore scraps NY listing and sticks to London may change.
This site is for entertainment only. Click here to read more
