Fewer firms are listing on European markets. Yet the assumption that they are opting for the other side of the Atlantic may be incorrect, according to recent research from HSBC and New Financial.
A recent report from the two firms stated that, over the last decade, 130 European companies had shifted to a US stock market listing. By contrast, over the same timeframe 1,013 European companies have delisted after being acquired by privately held or private equity firms.
Ian Stuart, CEO of HSBC UK Bank, commented: “This represents a combined loss of value of over US$1 trillion in today’s money. The inability of public markets adequately to recognise the value of companies on such a scale is problematic.”
According to Bloomberg data, in April alone buyers in 16 of the 46 M&A deals announced (34%) were private equity. Year-to-date, this figure is 65 of 178 – 37%.
There is significant disparity between the scale of economic impact that these two forms of European exit have had. The 130 firms moving to the US represent just 4% of European stock market value.
Reports from the Association for Financial Markets in Europe (AFME) last month found that the value of IPOs listed on European exchanges in 2025 so far was down 26% year-on-year, and that European and UK exchanges combined represented an average of just 10% of IPO issuance each month.
This follows efforts from the European Council to keep firms on public European markets, with the listing act introduced last year.
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Notable public acquisitions over April include US firm DoorDash’s acquisition of UK firm Deliveroo for US$3 billion, and Swiss insurance firm Baloise Holding’s sale to Helvetica Holding for US$1 billion.
The value of individual private deals has been subdued by comparison, with the largest over April being the US$1.2 billion acquisition of Danish towage and marine services provider Svitzer. Real estate firm Amara Group was the second largest with a US$613 million deal – almost half the size of Svitzer.
Collectively, just under 10% of April’s US$40.6 billion in deals was generated by private buyers.
In order to return listings to Europe, HSBC and New Financial emphasise the importance of simplifying market infrastructure, consolidating regulation and introducing broader economic reforms in line with 2024’s Draghi and Letta reports on European competitiveness.
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Part of this includes increasing institutional and investor engagement in European markets, as is the goal of the European Commission’s savings and investments union (SIU).
