Diversified Energy LON:DEC said on Wednesday it plans to move its primary stock market listing from London to New York, in the latest blow to the UK equity market.
The US-focused oil and gas producer, which trades on both the London Stock Exchange and the New York Stock Exchange, said its board had concluded that a shift in its main listing venue to the US was in the best interests of shareholders. It will retain a secondary listing in London under the FCA’s “equity shares (commercial companies)” category.
The group stressed that its operations and investor base are now overwhelmingly concentrated in the US. Diversified reports in US dollars, generates all of its profits in the country, and has its executive management team, headquarters, employees and assets located there. As of June 30, 2025, more than 65 per cent of its shares were owned by US investors.
Rusty Hutson, chief executive, said the move reflected the “natural long-term alignment” between the company and its home market. “We believe that positioning Diversified in the US will enhance liquidity, broaden our shareholder base, and allow us to compete more effectively for capital,” he said.
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The decision comes amid growing concern about the competitiveness of the London Stock Exchange, which has suffered a string of departures and missed out on some high-profile listings in recent years. Companies including CRH, the building materials group, and Flutter, the betting operator, have switched or signalled moves to New York, citing deeper capital markets and stronger investor appetite.
Case for New York listing has become compelling
Diversified first added a New York listing in December 2023, alongside its longstanding London presence, as part of an evaluation of its capital markets strategy. Having reviewed the benefits since then, the board said the case for a US primary listing had become compelling.
In a statement, the company said the move was expected to deliver several advantages: improved trading liquidity from access to deeper US capital markets; greater exposure to US investors, including passive investment pools such as index funds; a higher profile among institutional shareholders; and simplified share ownership for its employee base, all of whom are in the US. The change would also strengthen recruitment and retention efforts for top talent, it added.
The group highlighted the potential for inclusion in “premier US equity indices and exchange-traded funds”, a key consideration for companies seeking to widen investor reach.
The transition will require approval from shareholders through a UK scheme of arrangement, which needs backing from a majority in number of shareholders voting at a general meeting, representing at least 75 per cent in value of the shares cast. A circular outlining the proposals is due to be published in the coming weeks, with a vote expected shortly afterwards.
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Subject to approval, Diversified expects the scheme to take effect in the fourth quarter of 2025. Its shares would then trade primarily on the NYSE, with a secondary listing maintained in London.
The company also confirmed it would begin filing reports as a US domestic filer with the Securities and Exchange Commission from its 2025 year-end results.
The move is likely to reignite debate over London’s ability to retain energy and natural resources groups, which have historically been a cornerstone of the LSE’s market capitalisation.
