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Mining giant’s FTSE exit is another blow to London’s standing

Still, none of that adjustments the underlying logic for the company to loosen its ties to the UK. There’s the predictable waffle about “simplification”, and on paper at the least, it is smart for a miner with a powerful presence within the Pacific Rim to double down on a area with a number of the world’s fastest-growing economies.

But it says as a lot about London’s waning attractiveness because it does the corresponding rising affect of different international locations. When BHP and Billiton merged in 2001, the rationale for uniting two mining giants on reverse sides of the world was that they might have the ability to unlock a a lot better pool of capital.

The UK was the house of selection for the most important pure resources corporations on the planet, together with Rio Tinto, Anglo American, and Glencore and the status of London would even be a boon for share costs, and due to this fact the bonuses of its globetrotting executives, or at the least that was a part of the considering.

But BHP’s Australian-listed shares have tended to commerce round a fifth larger than these in London, weakening the case for sticking with the dual-structure, and corporations are in a position to increase capital in different components of the world way more simply now.

The counter-argument is that miners are a relic of a dwindling industrial-heavy previous, so we shouldn’t mourn its departure, however BHP is within the throes of a inexperienced reinvention and has determined that London isn’t its most popular vacation spot for such a metamorphosis. It’s troublesome to see that as something however a blow to London’s standing. 

This article is from The Telegraph’s City Intelligence publication. Sign up right here for incisive evaluation of the day’s greatest company story from our chief City commentator Ben Marlow.

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