British American Tobacco (BAT) has rejected calls to leave the London Stock Exchange and instead plans to focus on UK investors, according to Tadeu Marroco, the company’s new CEO. Marroco stated that abandoning the London stock market is not a priority and will not be at the top of his agenda. This comes in response to major shareholder GQG Partners urging BAT to move its primary listing to the New York Stock Exchange, arguing that it would result in a higher valuation and increased exposure in its largest market.
However, Marroco emphasized that BAT, which has been listed in London for over a century, has a strong investor base in the UK. He described the British market as being very benign toward public companies. Marroco also pointed out that if the company were to leave the FTSE, there is no guarantee it would be included in the S&P.
Some analysts agree with GQG Partners’ view, suggesting that a move to the US would make sense for BAT, especially as American investors are more receptive to reduced-risk products. On the other hand, other experts, such as Rae Maile from Panmure, believe that a relocation might not necessarily lead to a higher valuation.
BAT’s decision to stay in London reflects its confidence in the UK market and its existing relationships with UK investors. It also highlights the company’s strategic focus on maintaining its presence in the FTSE. By staying on the London Stock Exchange, BAT can leverage its strong foundation and continue to foster growth within the UK.
Moving forward, BAT aims to capitalize on its position in the UK market while further strengthening relationships with its investors. Marroco’s decision to prioritize UK investors aligns with the company’s long-standing tradition and commitment to the London Stock Exchange. Although there are differing opinions on the potential benefits of a move to the US, BAT remains steadfast in its dedication to the UK market.
Overall, BAT’s rejection of calls to leave the London Stock Exchange underscores its confidence in the British market and its intention to nurture its relationships with UK investors. While the debate surrounding a potential move to the US continues, BAT’s decision to prioritize its existing investor base demonstrates a commitment to sustained growth within the UK.
