Paddy Power owner Flutter scraps London stock market listing

The owner of Paddy Power has decided to scrap its London stock market listing, dealing a further blow to the City.

Flutter Entertainment, which switched its primary listing to New York in May 2024, said it would delist from the London Stock Exchange in August.

It follows a review announced in its quarterly results last month, as it warned that changes to gambling laws would lead to slower growth in its UK business.

The former FTSE 100 constituent concluded ‘it is in the best interests of the company and its shareholders’ to delist, blaming higher costs and regulation.

In an update to investors, Flutter said: ‘The company carefully considered, other things, the level of trading activity in its shares on the LSE as well as the additional cost, and regulatory and administrative obligations arising from retaining the LSE listing’.

The gambling firm initially shifted its primary listing to New York amid a rapid expansion in the US through its FanDuel sportsbook business, and to gain access to funding for investment in organic growth in countries such as India and Turkey.

Flutter said that an increase in gambling levies had affected its UK business while its other divisions saw growth in the first quarter.

It followed the closure of 57 of its 608 betting shops across the UK and Ireland, which put almost 250 jobs at risk, last October.

Flutter joins a growing list of companies leaving the London market through take-private deals or takeovers by foreign firms.

Others have shifted their primary listing away from London, including CRH, Wise, Ashtead and Indivior.

And hopes that Boots may be set for long-awaited return to the stock market look set to be dashed as it conducts talks with potential buyers about a £7.5billion sale. 

In recent months, a flurry of takeover bids for some of Britain’s largest companies from foreign predators has prompted renewed scrutiny of London’s ability to retain its brightest stars.

Energy firm DCC is the latest FTSE 100 firm to be circled by overseas predators and this week said it was ‘minded’ to back a £5.7billion offer from private equity firm KKR and Energy Capital Partners. 

Just days later, another FTSE 100member, product testing firm Intertek, extended the deadline for private equity firm EQT to make a firm takeover bid.

The board has previously said it was ‘minded to recommend’ the £9.2billion bid, all but confirming that it too will fall into foreign hands amid a takeover frenzy in the City.

It comes after City heavyweight Schroders backed a £9.9billion takeover by US rival Nuveen, while Lloyd’s of London underwriter Beazley agreed to be bought by Zurich Insurance in a £8.1billion deal.