CRH to delist from London Stock Exchange

(Sharecast News) - Building materials group CRH said on Monday that it was planning to delist from the London Stock Exchange. CRH also announced the proposed cancellation of its two classes of preference shares, comprising the 7% preference shares listed on the LSE and the 5% preference shares listed on Euronext Growth Dublin. The shares have a total par value of around €1.2m ($1.4m).

It said the proposed cancellations would be in exchange for a cash payment of an amount equal to 40 times the annual dividend per preference share.

The company had already announced in its results last month that it was undertaking a review of its LSE ordinary share listing and its preference share capital structure.

As part of the review, CRH said it carefully considered, among other factors, the level of trading activity for its ordinary shares on the LSE as well as the additional cost, regulatory and administrative obligations arising from retaining the LSE listings and maintaining the 5% and 7% preference shares.

"Following completion of the review, the board is satisfied that it is in the best interests of CRH and its shareholders to proceed with the LSE delisting and, subject to shareholder approval, the preference share cancellations," it said.

Since September 2023, CRH's primary listing has been on the New York Stock Exchange. Once the LSE delisting takes effect, the company's ordinary shares will be listed solely on the NYSE.

Russ Mould, investment director at AJ Bell, said: "Having already shifted its primary listing to the US, building materials specialist CRH is to now turn its back completely on London. The development, though not seismic, is another sign of London's diminished status in the roster of global markets.

"Companies who switch their main listing to the US often pledge to keep a presence in London, but CRH's actions suggest that is no longer a given."

Susannah Streeter, chief investment strategist at Wealth Club, said: "The delisting of CRH isn't a complete surprise, given that it had already switched its main listing to New York and three quarters of its profits are reliant on its operations in North America. However, with yet another big name heading Stateside, it will still be a significant blow to the London Stock Exchange.

"It comes after a flurry of other companies have taken flight from the UK to seek greater fortune under a New York listing. At the same time, there has also been a trend of global giants swallowing big fish from the UK pond, with acquisitions such as Schroders by Nuveen still front of mind. Each high-profile departure shrinks the UK's listed market and reinforces the perception that companies are finding deeper pools of capital and higher valuations across the Atlantic.

"We've also had a much more sluggish pipeline of new companies listing on the market. Although there have been hopes of a fresh influx of IPOs this year, the market volatility sparked by tensions in the Middle East may cause nervousness and delays.

"For UK investors who have a domestic bias, these trends limit the availability of UK-listed assets to add to portfolios. In this gap, it's not surprising that private market opportunities are becoming increasingly attractive, given that opportunities to invest in listed companies are declining."

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