London Stock Exchange Faces Delisting Concerns Amidst Takeover Talks
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By Amelia Sterling | LONDON – 2025/08/27 07:21:18
The potential delisting of Finance (IPF) is raising concerns about the health of the London Stock Exchange, as the firm engages in takeover discussions with New York-based private equity firm BasePoint Capital.
BasePoint Capital has until September 24 to announce a firm intention to make an offer for IPF or to withdraw from discussions. While a formal agreement has not yet been reached, IPF remains in an “offer period.”
This news follows concerns raised by FTSE 250 firm IG, which launched a “Save our Stock market” initiative, also known as the SOS campaign, aimed at reversing the market’s decline through policy changes.
IG’s campaign calls for increased capital flows, including the elimination of stamp duty on shares, which they describe as a “self-inflicted wound” that disadvantages UK investors.
In 2024, 88 companies either delisted or transferred their primary listing, marking the largest exodus as the financial crisis. Notable departures included Paddy Power owner Flutter and cybersecurity firm Dark Trace.
This year, money transfer firm Wise, the City market’s largest fintech company, opted for a primary listing in the US. Additionally, foreign takeovers have targeted UK companies, including a series of tech acquisitions earlier this month totaling £6.3bn in M&A transactions.
“we need to recognize that we are actively competing for capital and for companies. A nice stadium is great, but we need to ensure that all the other ingredients are right to ensure we have a winning team.”
Charles Hall, head of research at Peel Hunt, emphasized the need for the UK to compete effectively for capital and companies.
Frequently Asked Questions
- What does delisting mean for a company?
- Delisting means a company’s stock is removed from a stock exchange, preventing investors from trading its shares on that exchange. This can occur for various reasons, such as mergers, acquisitions, or failure to meet listing requirements.
- Why are companies delisting from the London Stock Exchange?
- Companies may delist from the LSE due to factors like higher valuations in other markets (e.g., the US), regulatory burdens, taxation policies, and the desire to access a larger pool of investors.
- what is the “Save our Stock market” initiative?
- The “Save our Stock market” initiative, launched by IG, aims to reverse the decline of the London Stock Exchange by advocating for policy changes, such as the elimination of stamp duty on shares, to attract and retain companies.
