US predators’ plans for secondary UK listings ‘barely a consolation prize’
Plans by two US predators to launch secondary listings in the UK after raiding the London market were described as ‘barely a consolation prize’ yesterday.
New York-listed McCormick said it will seek a lesser listing in London after gobbling up Unilever’s food business – including brands such as Hellmann’s, Marmite and Colman’s – in a £12bn deal.
Prologis is planning a similar move after persuading the board of FTSE 100 warehouse and data centre giant Segro to back a £14bn approach.
Segro’s shares rose 6.5 per cent, or 58.2p, to 953.2p after it said the ‘best and final’ offer from Prologis was acceptable, having batted away three bids.
US warehouse group Prologis is plotting a secondary London listing after Segro takeover
Yet the deal has added to fears that London is losing valuable firms to foreign predators buying them up cheaply.
Segro is the fifth – and biggest – FTSE 100 firm to back a takeover this year, following lab testing firm Intertek, Lloyd’s of London insurer Beazley, City institution Schroders and energy group DCC.
Other targets include easyJet, Rotork, Mitie and Tate & Lyle.
Secondary listings in London by foreign buyers are sometimes presented as a boost, but Charles Hall, head of research at broker Peel Hunt, said it was ‘barely a consolation prize’ and ‘just means UK funds can hold on a bit longer’.
‘If the businesses are not in the FTSE indices, most UK funds will sell,’ Hall said. ‘So London Stock Exchange Group might like it, but it is of little advantage to the UK.’
Airtel opts for London listing
The City received a much-needed boost yesterday when Airtel Africa picked the London Stock Exchange for the listing of its mobile money business due later this year.
‘We believe a London listing will provide access to a broad international investor base and support our ambition to unlock the long-term value of one of Africa’s leading fintech platforms,’ said chief executive Sunil Taldar.
The Africa-focused telecoms group is targeting a listing of its third-largest unit, Airtel Money, in the second half of 2026, which is later than originally planned due to war-related cost pressures.
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