Dowlais Group PLC's (LSE:DWL) potential takeover by American Axle & Manufacturing Holdings has left London juggling with yet another departure after last year’s record exodus.
Some 88 companies left or moved their primary listings from the stock exchange in 2024, marking the largest number since 2009, according to EY.
Dowlais, having recommended its £1.2 billion bid to shareholders on Wednesday, appears set to join them, after many set sights on better prospects in the US.
Tracing back to south Wales in 1759, Dowlais had been spun out of GKN, a founding constituent of the FTSE 100, following a takeover by Melrose Industries PLC in 2018.
Its takeover would see it follow high-profile moves by the likes of Ashtead Group PLC, Flutter Entertainment PLC and ARM Holdings PLC towards the US in recent years.
Ashtead followed Flutter in planning a primary listing switch, while ARM had left in 2016 following a takeover by SoftBank before floating in New York.
Just Eat Takeaway.com NV and Tui AG marked other big names to leave London for elsewhere last year, as concerns around low valuations and declining liquidity repeatedly arose.
Many of last year’s exits came by way of takeover though, which AJ Bell analyst Russ Mould noted previously meant “there was value to be had” despite struggles in London.
He added on Wednesday that Dowlais’ exit was “far from a done deal” though, given shareholders could “push back for a better offer”.
“The bid premium looks very skinny at 25%. AJ Bell calculates the average bid premium for UK-listed stocks was 47% in 2024 and 52% in 2023,” investors were told.