Just Eat Takeaway's Departure: A Blow to the UK Market's Attractiveness
Wednesday, Nov 27, 2024 5:05 am ET
4min read Just Eat Takeaway NV (JET) has announced its intention to delist from the London Stock Exchange (LSE), marking another high-profile exit from the UK market. The decision, driven by administrative burdens, complexity, and high costs, has significant implications for the LSE's competitiveness and the UK's attractiveness to international investors.
The Denmark-founded company, formed through the merger of Just Eat and Takeaway.com in 2020, initially planned to scrap its Dutch listing. However, it maintained dual listings in London and Amsterdam, as well as a US listing on the Nasdaq. Now, JET is set to abandon its London listing, citing low liquidity and trading volumes, high costs, and administrative complexity.
JET's decision follows a review of its global listing profile, which led to its delisting from the US Nasdaq in 2022. The company's shares have fallen nearly 90% in value since October 2020, contributing to its decision to focus on its primary Euronext Amsterdam listing.
The UK market has witnessed a steady exodus of small, medium, and large-cap companies since 2022, reflecting a broader trend of companies reassessing their listing venues. Just Eat's removal from the FTSE 100 in 2021, following its merger with Takeaway.com, further signals a change in the UK's investment landscape.
JET's delisting is a significant blow to the UK government and Financial Conduct Authority (FCA), which have been working to make the London listing regime more attractive to companies. The move highlights the challenges faced by the LSE in retaining international listings amidst fierce competition from other global exchanges.
The LSE delisting comes as part of a broader trend of companies seeking to streamline their listings and reduce costs. However, it also raises concerns about the UK market's ability to retain and attract high-profile companies. As companies like JET reassess their listing venues, investors should consider the potential impacts on share liquidity and trading volumes, which can significantly affect portfolio performance.
In conclusion, Just Eat Takeaway's delisting from the LSE signals a retreat of a high-profile company from the UK market, further reducing the attractiveness of the LSE to international investors. While the UK government and FCA have been working to enhance the London listing regime, the decision to delist amidst fierce competition highlights the challenges faced by the LSE in retaining its competitiveness.
The Denmark-founded company, formed through the merger of Just Eat and Takeaway.com in 2020, initially planned to scrap its Dutch listing. However, it maintained dual listings in London and Amsterdam, as well as a US listing on the Nasdaq. Now, JET is set to abandon its London listing, citing low liquidity and trading volumes, high costs, and administrative complexity.
JET's decision follows a review of its global listing profile, which led to its delisting from the US Nasdaq in 2022. The company's shares have fallen nearly 90% in value since October 2020, contributing to its decision to focus on its primary Euronext Amsterdam listing.
The UK market has witnessed a steady exodus of small, medium, and large-cap companies since 2022, reflecting a broader trend of companies reassessing their listing venues. Just Eat's removal from the FTSE 100 in 2021, following its merger with Takeaway.com, further signals a change in the UK's investment landscape.
JET's delisting is a significant blow to the UK government and Financial Conduct Authority (FCA), which have been working to make the London listing regime more attractive to companies. The move highlights the challenges faced by the LSE in retaining international listings amidst fierce competition from other global exchanges.
The LSE delisting comes as part of a broader trend of companies seeking to streamline their listings and reduce costs. However, it also raises concerns about the UK market's ability to retain and attract high-profile companies. As companies like JET reassess their listing venues, investors should consider the potential impacts on share liquidity and trading volumes, which can significantly affect portfolio performance.
In conclusion, Just Eat Takeaway's delisting from the LSE signals a retreat of a high-profile company from the UK market, further reducing the attractiveness of the LSE to international investors. While the UK government and FCA have been working to enhance the London listing regime, the decision to delist amidst fierce competition highlights the challenges faced by the LSE in retaining its competitiveness.
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