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The exodus of listed companies to the United States is a “London problem” and does not exist elsewhere in Europe, continental Europe’s largest stock exchange operator Euronext said.
Euronext CEO Stefan Buzina said on Wednesday that Europe is in a strong position to maintain and attract listings in major markets, even as companies such as Total Energy seek to list in the United States. He said that there is.
His comments come after Ashtead last announced plans to move its main listing to New York in December, after London was hit by the transfer of shares in companies such as Flutter and CRH to the US. It is something.
“Today, the London problem does not exist on this continent. It is not true that there is an exodus of European companies, there is an exodus of British companies,” he told reporters in Paris.
Fewer than 20 companies listed in the British capital last year, the lowest number of additions to the stock market since the 2009 financial crisis. Buzina said the liquidity pooled on Euronext’s seven European stock exchanges far exceeds that in London.
Stefan Budzina said companies will continue to prefer Europe to the UK because “people go where the markets are liquid” © Chris Ratcliffe/Bloomberg
He said businesses would continue to prefer continental Europe to the UK, adding: “People will go where the markets are fluid.” . . Euronext has twice as much liquidity as London. The company has between €9 billion and €12 billion of shares, which is about double the amount of shares traded in London. ”
In continental Europe, French companies such as oil major Total and asset manager Tikehau have moved to New York, citing a more favorable investment environment for US oil majors and a better understanding of asset managers among investors. The company announced that it is considering listing on the
But Buzina said Total’s move was related to a growing receptivity to the oil and gas industry among U.S. investors, with the company’s potential to move its primary listing from Paris to New York last year. That’s what CEO Patrick Pouyanne pointed out when he first said that there is.
Continental Europe has also seen delistings and privatizations, but “not on the same scale as in the UK,” Buzina said. . . This may happen in the future, but there is not enough concrete analysis at this point. ”
European companies also face weak growth forecasts and political uncertainty, weighing on trading activity and listings in Europe.
Private equity groups are increasingly active across Europe and the UK, taking advantage of the low valuations of European companies. European private equity trading rose 78% to $133 billion in 2024 as funds took advantage of distressed valuations of large companies, the Financial Times reported this week.
But Budzina said private equity funds were “not worried at all” and said the activity would be a “tailwind” for listings as private equity groups look to exit stakes in European companies. He said it was possible.
In Q3 2024, the latest quarter for which data is available, listings accounted for 14% of Euronext’s revenue.
Mr Busina, a former Santander and Deutsche Bank dealmaker, transformed the size of Euronext during his nearly 10-year tenure, acquiring major exchanges in Ireland, Norway and Italy.
He added that he was “very interested” in further acquisitions, including Spain’s BME exchange, owned by Swiss operator SIX, and Nasdaq’s Nordic operations, but that Euronext was not in active negotiations. said.
