Smurfit Is Set to Join Exodus of Big Names From UK Stock Market

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A $20 billion merger in the packaging industry spells one thing for the UK stock market: the prospect of losing yet another of its top companies.

A planned tie-up between paper and packaging giant Smurfit Kappa Group Plc and WestRock Co. of the US would result in the cancellation of the Dublin-based company’s premium listing on the London Stock Exchange. Smurfit Kappa has been a member of the exchange’s benchmark FTSE 100 Index since 2016.

It’s missed out on the hottest initial public offering of the year, with chip designer Arm Holdings Ltd. shunning its home market for a New York listing. Meanwhile, building materials company CRH Plc is due to move its main listing from London to New York this month and gambling firm Flutter Entertainment Plc is planning a secondary US listing in early 2024.

The low valuation of the UK stock market has hastened the exodus by encouraging foreign companies and private equity firms to buy and delist British companies. It’s also pushing UK businesses to consider listing elsewhere in hopes of securing a richer value for their shares. And the UK’s slumping economy has pushed investor dollars into other markets.

 

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