Business & Investment

ALEX BRUMMER: Natural disaster brewing in the UK mining sector

London proved the appeal of high-tech floats in 2021. Earlier this year there were 49 lists in AIM and major markets, which are still moving fast.

The latest company to rush to go public (IPO) is the Czech-based Eurowag, which provides transportation and other services to small businesses across the continent.

He chose to go public in London because it was “first-class” and captured the city’s grande, Paul Manduca, as chairman.

The departure of mining giant BHP from the FTSE 100 means that some UK funds will not be able to hold dividend shares during the global metal surge.

Eurowag’s decision to float, worth an estimated £ 1.7 billion, will be difficult following the announcement by Life Sciences Group Oxford Nanapore.

On the wings waiting for the lift-off, there are several other fintech players such as Klarna, Revolut, Monzo and Atom Bank, all looking to the city.

Fortune magazine describes London as “the hub of the hottest new technology IPO in 2021.” This renaissance is welcomed and likely, but while the battalion’s major shareholders flee from these shores, even if the battalion’s major shareholders sit in their hands, it rarely boosts Britain’s reputation.

The departure of mining giant BHP from the FTSE 100 to a new home in Sydney, competing for top slots with AstraZeneca, is a tragedy.

This means that some UK funds will not be able to hold dividend shares during the global metal surge.

In addition, hiding in Oz, which is out of sync with the New York and London time zones, negatively impacts liquidity and ESG transparency.

What makes the BHP exit particularly embarrassing is that it is a de facto surrender to the upset of activist Elliott Partners.

Former Aviva investment manager David Cumming warned Rio Tinto in an interview with The Sunday Telegraph, surprised that BHP was comfortable “going to Australia”. increase. History in Britain dates back to 1873. same.

Legal & General, which owns just under 1.9% of BHP, has publicly expressed disappointment with the shift.

The danger to the London Stock Exchange is that it damages its reputation as a natural resource champion. With many homes in the United States, Glencore, Vendantary Resources, etc., the burden of LSE in this sector is significant, covering a wide range of businesses, including Chile and Mongolia.

There is strong speculation that Rio Tinto may want to move down to relieve political pressure after the sacred Jukan Gorge has been destroyed and clashed with Australian indigenous peoples.

CEO Jacob Stausholm, who took over the job after the blast, supports maintaining estimates in London. Australians, the successors to Chairman Simon Thompson, can see things differently.

It’s amazing that there is no campaign to maintain BHP in London. More recently, Unilever, Smith & Nephew, and the plumbing group Ferguson have all considered shifting key quotes to other markets. They were blocked at the pass.

BHP should never have been allowed to throw away. Any effort to switch Rio to Oz is a terrible blow and a betrayal of heritage, which must be firmly resisted.

Clickbait

Primark owner ABF has long argued that online delivery doesn’t make much sense because of its low-priced fashion products.

Despite the pandemic stop-go transaction in 2021, Philadelphia pushed ahead with store expansion, opening 15 stores, including 4 in the United States, and Philadelphia added the latest.

Full-year earnings forecasts were raised, but the combination of supply issues and Covid caused same-store sales to plummet in the fourth quarter, resulting in the sale of shares.

As always, AB’s food business, which contains sugar in the stars, is there to better balance the results.

It’s interesting that Primark is upgrading its digital presence and hiring new talent. The stronger and brighter presence of online sales will eventually show the click-and-collect option.

Personal sadness

Private Equity costume CVC, which is currently stalking LaLiga in Spain, has increased its firepower by acquiring Glen Dower, a spin-off from Deutsche Bank, as if there were not enough resources yet.

Together, the expanded outfit will have £ 96 billion in assets. In a typical private equity style, the financial details of the transaction are not disclosed. It’s a lot of new resources in secret hands.

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ALEX BRUMMER: Natural disaster brewing in the UK mining sector

https://www.dailymail.co.uk/money/comment/article-9986467/ALEX-BRUMMER-Natural-disaster-brewing-Britains-mining-sector.html?ns_mchannel=rss&ns_campaign=1490&ito=1490 ALEX BRUMMER: Natural disaster brewing in the UK mining sector

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