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The CEO of Astrazeneca Pascal Soriot, pictured in London on June 28, 2023, reports that he wants to move the company’s shares from London to the United States.
Justin Talis | AFP | Ghetto images
Pressure accumulates on the London Stock Exchange, with reports that the British pharmaceutical giant Astrazeneca It can move its list to the US by delivering another blow this week.
Executive Director Pascal Soriot is considering moving the company’s shares from London to the United States, British newspaper The times He reported on Tuesday afternoon, citing anonymous sources. It is alleged that the frustrations of Sorot from the UK regulatory environment – especially the rules surrounding the new approvals of medicine and medicines for pricing drugs – lead to this move.
Astrazeneca declined to comment on the Times report.
The output of the United Kingdom Market would cause a basic index review, given that Astrazeneca is the most valuable business listed on London FTSE 100. The Astrazeneca market cap was $ 161.2 billion ($ 221.1 billion) to the cost of closing at
The potential transatlantic move of Astrazeneca would contribute to concerns about London’s weakening status as a global financial center. A number of companies have abandoned the market in London or reviewed plans to sail in the city in the last year.
Tony Meadose, the head of investment in London Bri Wealth Management, denotes the rumors of Astrazeneca, lists the considerations as “disappointing” to the UK’s shares market -but he admitted that “not surprising”, given that it would form the most development in the development of
Earlier this year, Reports appeared This Chinese fast fashion giant Shane was looking to list in Hong Kong instead of in London when it became public. Last week, News Agency Reuters reported that the company plans to file a confidential Hong Kong IPO.
In the meantime Declared in June that he moves his main list from London to New York.
Christo Kaarman, CEO and co-founder of WAS, said in a statement that this move would help to raise the company’s awareness in the United States while providing the company with better access to the “deepest and most fluid market in the world”.
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The companies listed in London have historically had much less grades than their Wall Street counterparts. Research From the British Investment Manager Rathbones last year showed that the price-printing ratio for the United Kingdom shares was 32% lower than those listed in the United States on the basis of a similar one.
On the reverse side, Financial Times reported Last week, the Norwegian software giant Visma chose London for his upcoming public market debut.
“Large and important companies like Astrazeneca are looking for an increase in exposure to a broader investor base and they will receive this from moving to the US list,” Bri’s Meadows told CNBC on Wednesday.
“The tendency to move the list or stream of achaitions listed in the UK stresses the value of the United Kingdom stock market, but does nothing to encourage a new delivery of companies listed here to support the future index in a global context,” Meadows added.
The UK loses its advantage
Claire Trache, founder of M&A Advisory Trachet, said Astrazeneca is transferring his list to New York, will be a “memorable loss” for the London Stock Exchange.
“Considering the complexity of the company, this is not simply because of the liquidity or benefits of the valuation, often cited by departing companies, more than the trifte of lower results from capital markets, regulatory restrictions and non -compliant incentives that impede the scale and reward innovation,” she told CNB.
Trachat added that companies listed in London have already made a move to New York in recent years, and the departure of Astrazeneca will only double that figure.
“The potential move makes it painfully clear in the world markets that the United Kingdom is losing its advantage of the needs of world -class companies,” she said. “This is not an isolated story -and this is the biggest problem. This is part of a wider shift, where founders and boards are increasingly looking for the United States for deeper capital, stronger support and more ambitious investor base.”
Tom Bacon, based on London-based Global Award BCLP-which has a division dedicated to M&A and corporate finance-enhanced Soriot’s desire to Astrazeneca to move away from London “very disturbing”.
“I think this should sound the alarm for the UK government, that they have to do more both to support the city and our stock market along with our critical industries as life sciences and pharmaceuticals,” he said.
The listing of the change “will not be an easy move to download”
Dan Coatsworth, an investment analyst at AJ Bell, on Wednesday, said the reported Astrazeneca plans seem to be guided by the needs of the business instead of pursuing a higher rating – but he added that moving the company’s Atlantic list “will not be an easy move to withdraw.”
“Unlike many other” defects in the United Kingdom Market “with a dominant shareholder base in the United States such as CRH and Flutter, Astrazeneca has a more geographically diverse pool from investors,” he explained in an email.
However, Coatsworth noted that Astrazeneca generates about 42% of its US sales and has already had plans to increase its operating imprint in the country.
Earlier this year CEO Soriot told CNBC Astrazeneca was “very committed to the United States”, where the company has two major research and development centers.
AJ Bell’s Coatsworth told CNBC that Astrazeneca’s CEO can also see a full American action as “a step towards getting better condition in the condition.”
European pharmaceutical companies are uncertain about their future on the US market, where US President Donald Trump has threatened to impose a drug tariff -specific for drug imports.
While the industry was released from so -called reciprocal rates put the investigation sector from the US Department of Trade, warn Pharma rates are “expecting soon” and signed an enforcement order Targeting medicine manufacturers to reduce the price of some medicines in accordance with the costs paid abroad.