Ashtead Group’s decision to shift its primary stock market listing to the United States has become a significant talking point, marking another major departure from the London Stock Exchange (LSE). The equipment hire company, which makes most of its profits in North America, called the US a “natural long-term listing venue.” With its headquarters, workforce, and operations largely based across the Atlantic, the move seems to reflect the reality of its business focus.
This shift highlights the growing appeal of US financial markets for global companies, especially those with strong ties to the region. While Ashtead will keep a UK listing, its decision raises fresh concerns about the LSE’s ability to retain major firms. Recent years have seen high-profile departures, including ARM Holdings and Flutter Entertainment, both choosing New York for their primary listings. These moves have sparked debates about whether London remains competitive as a global financial centre.
Ashtead’s timing is notable. The US construction industry is currently dealing with slower growth due to high interest rates, which make borrowing more expensive and dampen commercial projects. Despite these challenges, the company is optimistic about a rebound, expecting the market to pick up as rates stabilise. By shifting its listing to the US, Ashtead aims to attract more American investors and align itself with its strongest market.
However, not everyone is happy. The decision has drawn criticism for potentially paving the way for higher executive pay packages. CEO Brendan Horgan’s proposed $14 million pay deal has raised eyebrows in the UK, where it was deemed excessive. In the US, however, such compensation is more typical. This difference in corporate culture could be another factor driving Ashtead’s move.
Despite concerns, Ashtead has assured that its UK investment plans will remain unchanged. This reassurance comes as the UK government works to boost infrastructure spending by loosening debt rules, unlocking billions for projects like roads, railways, and hospitals. Even so, the loss of a prominent player like Ashtead highlights the challenges facing the UK in retaining global businesses.
Founded in England in 1947 and listed on the LSE since 1986, Ashtead expanded into the US in the 1990s. It quickly grew to become one of North America’s largest equipment rental firms. Now, its decision to focus more firmly on the US reflects a shift in economic priorities. While the move makes strategic sense for the company, it also sends a clear message about the shifting balance of power in global financial markets. For London, the departure is yet another wake-up call to adapt and compete more effectively in an increasingly globalised economy.
(Source: BBC)