Mining giant Glencore (GLNCY) has scrapped plans to move its main stock market listing to New York after weak half-year results.
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The group said back in February that it was mooting a move from the FTSE 100 in London to New York.
London Value
However, it said today that it now believed that moving its primary listing away from London would not deliver better value to shareholders.
The company said: “Of the major global equity exchanges, the scale and depth of US capital markets is unrivaled but, having considered the costs and benefits, including in respect of indexation, we do not believe that becoming a US domestic issuer would be value accretive for shareholders at this point in time.”
It added that it would continue to keep a potential move under review.
The update came as the group said President Donald Trump’s stop-start tariff trade policies had been one of the factors in reporting a net loss of $655 million in the first six months. That is almost three times the $233 million loss it reported at the same time last year.
It also posted a 14% drop in underlying earnings to $5.43 billion.
The impact of this uncertainty on the Glencore share price has been clear in the year to date.
Cost Cuts
Glencore has been battered by lower coal prices, copper production problems and issues around U.S. mineral imports given tariff turmoil.
As a result, the group said it would now be launching a $1 billion cost-cutting program by the end of 2026 to shore up its finances. Over 50% of these cuts have already been targeted for the end of 2025.
This is likely to include job cuts amongst its 150,000-strong global workforce, as well as streamlining its operations across energy, consumables, contractors, maintenance and administrative functions.
Despite the downbeat update, Glencore chief executive Gary Nagle remained confident that the company was in a strong position over the long-term.
“While there is much uncertainty around the impacts of geopolitics and trade in the shorter-term, we remain of the view that, in certain commodities, the scale and pace of required resource development will struggle to meet the demand projections for such materials into the future. We are well placed to participate in bridging this gap, “ he said.
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