Continental Europe Avoids London’s Listings Exodus, Says Euronext CEO
London’s Stock Market Exodus: A “London Problem,” Not a European One, Says Euronext CEO
The wave of companies leaving London’s stock market for the U.S. is a uniquely British issue, according to Stéphane Boujnah, CEO of Euronext, Europe’s largest stock exchange operator. While London has seen high-profile departures like Flutter, CRH, and Ashtead, Boujnah argues that continental Europe remains resilient, with no comparable exodus of listings.
Speaking in Paris, Boujnah emphasized that Europe’s main markets are well-positioned to retain and attract companies, despite some businesses, such as French oil giant TotalEnergies, exploring U.S. listings. “Today, the London problem doesn’t exist on the continent. It’s not true that there is an exodus of European companies; there is an exodus of British companies,” he said.
Last year, fewer than 20 companies listed in London, marking the lowest number of new additions since the 2009 financial crisis. Boujnah pointed to Euronext’s superior liquidity as a key advantage, noting that the combined trading volume across its seven European exchanges is roughly double that of London. “People go where the market is liquid,” he said. “We have €9 billion to €12 billion in volume of shares exchanged daily, around double that of London.”
While some European companies, including TotalEnergies and asset manager Tikehau, have considered U.S. listings, Boujnah attributed these moves to sector-specific factors. For instance, TotalEnergies’ interest in New York reflects the more favorable investor sentiment toward oil and gas companies in the U.S., as highlighted by CEO Patrick Pouyanné last year.
Delistings and take-private deals have occurred across Europe, but Boujnah stressed that the scale of these activities pales in comparison to the U.K. “That could exist in the future, but for the moment, we don’t have enough concrete analysis,” he said.
European markets have faced challenges, including weak growth forecasts and political uncertainty, which have dampened deal activity and listings. However, private equity groups have seized opportunities, with European private equity deals surging 78% in 2024 to $133 billion, driven by distressed valuations of large companies.
Boujnah remains optimistic, viewing private equity activity as a potential catalyst for future listings. “I’m not at all worried by private equity,” he said. “It could be a tailwind for listings as these groups seek to exit their stakes in European companies.”
Listings accounted for 14% of Euronext’s income in the third quarter of 2024, reflecting the exchange’s growing influence under Boujnah’s leadership. Over his nearly decade-long tenure, he has expanded Euronext through acquisitions, including the main exchanges of Ireland, Norway, and Italy.
Looking ahead, Boujnah expressed interest in further acquisitions, such as Spain’s BME exchange and Nasdaq’s Nordic operations, though he clarified that no active negotiations are underway. “We would be very interested in these opportunities,” he said, signaling Euronext’s ambition to continue shaping Europe’s financial landscape.
As London grapples with its challenges, Boujnah’s confidence in continental Europe’s markets underscores a broader narrative: while the U.K. faces a liquidity crisis, Europe’s exchanges are poised to thrive, offering a compelling alternative for companies seeking stability and growth.
Conclusion:
The London stock market exodus, characterized by a notable number of companies leaving for the United states, is a pressing concern that highlights unique challenges facing the UK’s financial sector. Stéphane Boujnah, CEO of Euronext, aptly describes this phenomenon as a “London problem,” underscored by the resilience of continental European markets in retaining and attracting companies.
Boujnah’s assertion that “the London problem doesn’t exist on the continent” is supported by data showing that while several high-profile British companies like Flutter, CRH, and Ashtead have departed, major European markets such as France and Germany have not witnessed a comparable exodus. Europe’s main markets, including those operated by Euronext, offer ample advantages such as superior liquidity, less regulatory complexity, and increased investor confidence.
One key reason for the UK’s financial woes is its lackluster ability to innovate in terms of valuations and investor pools relative to U.S. markets. The absence of a 0.5% stamp duty in the U.S., which contrasts with the UK’s similar tax, further incentivizes companies to list their shares in more favorable environments. Additionally, private equity takeovers and foreign acquisitions have played a significant role in driving firms out of London.
The government’s response to this issue is critical. Suggesting more direct action, such as simplifying the IPO process and reconsidering stamp duty, could help stem the tide of departures. By addressing these structural issues,policymakers can create a more conducive environment for capital to flow into British institutions.
Euronext’s commitment to growing its market and acquiring more stock exchanges indicates a broader enthusiasm for attracting listings. With interest rates poised to stabilize or decrease, Boujnah is optimistic about 2025 being a better year for Initial Public Offerings (IPOs).
while Boujnah accurately identifies the London stock market exodus as a problem that is uniquely British, the resilience of European markets underscores the complexity of global financial integration. By understanding these dynamics and implementing targeted solutions, the UK can begin to reclaim its position as a major financial hub. The reality of this situation underscores the necessity for policymakers to closely examine and address the structural issues driving this exodus to ensure the long-term vitality of Britain’s financial landscape.
Teh London stock market exodus, characterized by a notable number of companies leaving for the United States, is a pressing concern that highlights unique challenges facing the UK’s financial sector. Stéphane Boujnah, CEO of Euronext, aptly describes this phenomenon as a “London problem,” distinct from the resilience of continental European markets.The data speaks volumes: while fewer than 20 companies listed in London last year, resulting in the lowest number of new additions since the 2009 financial crisis, European markets continue to attract and retain companies despite facing their own challenges.
Boujnah’s assertion that European markets are well-positioned to retain and attract companies is supported by Euronext’s superior liquidity. With a combined trading volume across its seven European exchanges roughly double that of london,Euronext offers a compelling choice for companies seeking stability and growth. the omission of a meaningful exodus from European markets underscores Boujnah’s confidence in their ability to withstand sector-specific developments.
While some European companies, like TotalEnergies, have considered U.S.listings due to favorable investor sentiment toward sectors like oil and gas, these moves are seen as sector-specific rather than indicative of a broader exodus.Delistings and take-private deals have occurred across Europe,but their scale pales in comparison to the UK’s current exodus.
Despite these challenges, Boujnah remains optimistic, viewing private equity activity as a potential catalyst for future listings. The surge in European private equity deals to $133 billion in 2024, driven by distressed valuations, underscores this sentiment. With listings accounting for 14% of Euronext’s income in the third quarter of 2024, Boujnah’s leadership has been instrumental in shaping Europe’s financial landscape.
looking ahead, Euronext’s ambition is clear: to continue expanding through acquisitions and shaping the future of European finance. As London grapples with its liquidity crisis and the loss of key firms like Flutter and CRH, Boujnah’s confidence in continental Europe’s markets offers a powerful counter-narrative. the exodus from London’s stock market is a unique issue,and while it poses significant challenges for the UK’s financial sector,European markets are poised to thrive.