CRH (GB:CRH) (CRH), the largest building materials group globally, has confirmed its intentions to rebrand as an American company following a majority vote by shareholders in favor of relocating its primary listing from London to New York. This decision by the company, which commands a market capitalization of £29 billion and whose major profits are US-based, resonates with apprehensions regarding London’s stock market future.
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The Dublin-based extraordinary shareholder meeting witnessed over 95% approval for the relocation, which the company believes will augment its valuation and promote business growth in the world’s most significant economy. With this green light, CRH is poised to shift its primary listing to the New York Stock Exchange on September 25 while maintaining an ordinary London listing but discontinuing trades in Dublin. The trend of companies veering away from London correlates with a slowdown in initial public offerings this year.
While CRH’s CEO Albert Manifold refrained from commenting on the London or Dublin exchanges’ future, he emphasized the company’s robust merger and acquisition strategy, which will be further facilitated by a US listing. Despite potential short-term hits due to London-based index funds selling ahead of the move, the ultimate aim remains long-term shareholder value, underscored by the vote’s overwhelming support.
Turning to Wall Street, analysts have a Strong Buy consensus rating on CRH stock based on 10 Buys and one Sell assigned in the past three months, as indicated by the graphic above. Nevertheless, the average price target of 4,592.14p per share implies 16.76% upside potential.
