Irish airline Ryanair has said it plans to exit the London Stock Exchange in the coming months. Questionable, the effects of Brexit on the business operations of the company.
The London Stock Exchange has not yet commented on reports by Ryaner’s CEO Michael O’Leary, who has announced that his company will “probably be removed from the list (of companies listed on the London Stock Exchange). Over the next six months”. A blow to the London Stock Exchange (LSE), which has been struggling to maintain its position as world financial leader since Brexit.
One more name on the list
Ryanair’s decision closely follows the BHP Group’s decision to exit the London Stock Exchange this summer and turn the Sydney Stock Exchange into its flagship stock exchange. The airline is expected to place most of its securities on the Dublin Stock Exchange and the US Nasdaq.
Ryanair wants to be a European company
Since Brexit, every airline providing services in Europe must be controlled by at least 50% of EU partners. Ryanair noted in 2020 that British citizens will not be able to receive shares from January 2021, as will non-EU countries.
In addition to some pressure from the European Commission on European companies to “take action” in this direction, Ryanair explained that holding two stock trading sites simultaneously was too expensive.
Great decrease in the volume of trade transactions
The epidemic has already cost airlines a lot and they are slowly starting to recover. The number of shares of Ryanair traded on the Dublin Stock Exchange has fallen by almost 44% this year compared to 2020. But this decline is of less concern than the volume of shares traded on the London Stock Exchange. Over the past 10 months, that trade volume has shrunk by 68% from 2020 figures, according to Refinitiv. What really motivates the company to leave LSE.
The LSE’s struggle to be a leader seems to be in vain
Ryanair testified that the exit from the London Stock Exchange was “in line with the general trend” among European companies after Brexit. EasyJet may soon follow its rival and leave the LSE, which was warned last January.
As the City of London seeks to retain its place as a global financial hub in the wake of Brexit, much of the Euro equity trade is now shifting to Amsterdam, which could possibly play a key role in the British capital