Bloomberg: London's status as financial hub dwindling
London’s stock market is said to be contracting at its quickest pace in more than ten years, putting the city’s position as a global financial hub at risk. Read Full Article at RT.com.
TroibNews 
The stock market is experiencing its fastest decline in over a decade, according to a report from Bloomberg.
The number of companies listed on the London Stock Exchange is dropping at the highest rate seen in more than ten years. In 2024, approximately 45 firms are said to have delisted from the London stock market, marking a 10% increase compared to the total for last year. This represents the largest exodus of companies from the exchange since 2010. Meanwhile, the volume of deals involving UK corporations surged by 81% this year, exceeding $160 billion.
Data from Bloomberg indicates that only 11 companies have successfully conducted IPOs in London this year, raising a total of $1 billion—a decline of 11% compared to the same timeframe in 2023.
“Unless the UK gets its act together, it’s going to continue to lose ground and relevance,” stated Liad Meidar, managing partner at investment firm Gatemore Capital Management. “Quite simply, companies can’t get the right cost of capital. They can’t get the valuation they want.”
The report highlights the significant activity of overseas private equity firms in the mergers and acquisitions sector. For instance, Starwood Capital Group from Florida completed an $852 million acquisition of London-listed Balanced Commercial Property Trust in November. Additionally, EQT from Sweden finalized a $2.7 billion purchase of videogame services company Keywords Studios, while Thoma Bravo, based in Chicago, acquired cybersecurity software provider Darktrace for $5.3 billion.
Looking ahead, more new deals are anticipated. Amanda Blanc, CEO of UK-based insurance giant Aviva, is reportedly seeking to persuade the board of rival Direct Line Insurance Group to consider a $4.2 billion takeover bid. At the same time, General Atlantic, a major US investment firm, has unveiled intentions to acquire the online training business Learning Technologies Group for $1 billion.
Despite the challenges, the UK stock market remains appealing to bargain hunters, with British equities currently trading at a record discount of over 40% compared to global counterparts, according to Bloomberg.
“If London wants to keep its place as the financial center of Europe, major reforms are needed,” remarked Joachim Klement, a strategist at British advisory firm Panmure Liberum. “It is time for UK investment banks, the London Stock Exchange, and regulators to realize the seriousness of the situation and take action. Unfortunately, there are no easy fixes.”
Rohan Mehta contributed to this report for TROIB News
The number of companies listed on the London Stock Exchange is dropping at the highest rate seen in more than ten years. In 2024, approximately 45 firms are said to have delisted from the London stock market, marking a 10% increase compared to the total for last year. This represents the largest exodus of companies from the exchange since 2010. Meanwhile, the volume of deals involving UK corporations surged by 81% this year, exceeding $160 billion.
Data from Bloomberg indicates that only 11 companies have successfully conducted IPOs in London this year, raising a total of $1 billion—a decline of 11% compared to the same timeframe in 2023.
“Unless the UK gets its act together, it’s going to continue to lose ground and relevance,” stated Liad Meidar, managing partner at investment firm Gatemore Capital Management. “Quite simply, companies can’t get the right cost of capital. They can’t get the valuation they want.”
The report highlights the significant activity of overseas private equity firms in the mergers and acquisitions sector. For instance, Starwood Capital Group from Florida completed an $852 million acquisition of London-listed Balanced Commercial Property Trust in November. Additionally, EQT from Sweden finalized a $2.7 billion purchase of videogame services company Keywords Studios, while Thoma Bravo, based in Chicago, acquired cybersecurity software provider Darktrace for $5.3 billion.
Looking ahead, more new deals are anticipated. Amanda Blanc, CEO of UK-based insurance giant Aviva, is reportedly seeking to persuade the board of rival Direct Line Insurance Group to consider a $4.2 billion takeover bid. At the same time, General Atlantic, a major US investment firm, has unveiled intentions to acquire the online training business Learning Technologies Group for $1 billion.
Despite the challenges, the UK stock market remains appealing to bargain hunters, with British equities currently trading at a record discount of over 40% compared to global counterparts, according to Bloomberg.
“If London wants to keep its place as the financial center of Europe, major reforms are needed,” remarked Joachim Klement, a strategist at British advisory firm Panmure Liberum. “It is time for UK investment banks, the London Stock Exchange, and regulators to realize the seriousness of the situation and take action. Unfortunately, there are no easy fixes.”
Rohan Mehta contributed to this report for TROIB News
