Irish construction giant CRH was much talked about in the business pages last week, following the decision to delist from London to join the New York Stock Exchange. The move is a blow to Rishi Sunak, whose financial background was seen as a key weapon in the battle to keep The City prominent in a post-Brexit investment landscape. There are several practical advantages to the move; opening to a wider US investor base, the generally accepted higher valuations seen in the US market, and the opportunity to capitalise on President Biden’s infrastructure spending. Indeed, 3/4s of CRH’s earnings are currently generated in North America.
However, before we engage in some friendly schadenfreude with our friends across the Irish Sea, the implications for the Irish stock market are also worth noting. With Flutter (formally Paddy Power) also making the move to the US there is a growing probability that both companies could delist from the Irish market also. CRH, Flutter, Kerry Group, and Ryanair amount to roughly 2/3s of the whole Irish market. Dublin continues to be a growing financial centre, but the potential loss of such big names from an equity perspective is certainly something to keep an eye on.
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