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Ferguson to leave the FTSE 100 in May as it focuses on the US
Plumbing products firm Ferguson (FERG), which generates 100% of its revenue in North America, is set to move its primary listing to the US after shareholders recently approved the move.
This will see the company exit the FTSE 100 on 12 May as it moves to a ‘standard listing’ on the UK market where it will no longer qualify for inclusion in FTSE indices.
Numis analyst Christen Hjorth says there is a ‘risk of potential indigestion as the group falls out of the FTSE index’.
Ferguson follows hot on the heels of mining giant BHP (BHP) which moved its own main listing to Australia and departed the UK’s flagship index in January 2022.
Ferguson had sold its UK operation – Wolseley – to US private equity firm Clayton, Dubilier & Rice in February 2021 so the move looks logical but its decision will further erode the depth and breadth of the FTSE 100.
Chip designer ARM’s planned listing on Nasdaq rather than making a feted return to the UK market, where it was a member of the FTSE 100 until its $31 billion takeover by current owner, Japan’s Softbank, in 2016, also reflects the UK’s struggle to attract and retain large businesses.