Moving British American Tobacco Plc’s (BAT) listing from London to New York could cause significant internal disruptions. In a recent interview with the FT, Tadeu Marroco expressed doubts about the clear advantages of relocating BAT’s listing away from the UK stock market, as some have proposed.
Rajiv Jain, Chairman and Chief Investment Officer of GQG Partners and a significant investor in BAT, previously urged the company to relocate its primary listing to New York. Jain argued that it was illogical for BAT to continue its listing in London, noting a shift away from the UK in its core ownership base.
Marroco, who took on the CEO role in May, mentioned that there were benefits for investors in maintaining the listing within the UK, even as the London Stock Exchange faces challenges in attracting and maintaining leading companies.
In related movements, shareholders of German travel company TUI AG recently decided to remove their listing from the London Stock Exchange and transfer trading to Frankfurt.
Similarly, Ryanair Holdings Plc withdrew its listing from London in 2021 due to Brexit-related regulatory issues, and Arm Holdings Plc opted for a listing in New York.
