- Move sparks fears the FTSE 100 group could quit London for the US
Smith & Nephew has fuelled fears it could quit the London stock market by relocating one of its top executives to the US.
The FTSE 100 firm, which makes hip replacements and other orthopaedic implants as well as wound dressings, said finance chief John Rogers has moved ‘in recognition of the importance of the US market to the group’s strategy and operations’.
Most of the company’s top brass is already based in the US, including chief executive Deepak Nath, and more than half of its revenue comes from the country.
The decision to relocate Rogers, who is British, sparked a fresh round of speculation that Smith & Nephew could move its headquarters and stock market listing to the US.
The company is a member of the FTSE 100 index of blue-chip stocks with a value of over £11billionn.
The announcement comes amid mounting anxiety over the health of the stock market in London just a day after AstraZeneca said it was launching a direct listing in New York.
FTSE 100-listed Smith & Nephew has a value of over £11billion.
AstraZeneca – the second largest company on the Footsie with a value of £172billion – insisted it will retain its primary listing in London.
But that failed to quash speculation it could be planning to move to the US.
Russ Mould, investment director at AJ Bell, said: ‘Smith & Nephew is a prime candidate to transfer its main stock market listing to the US, and its latest strategic decision would suggest it is already greasing the wheels, ready to make the move.
‘Key reasons for a company to switch its main stock listing from the UK to the US include being closer to customers and shareholders, chasing a higher valuation, and to make acquisitions. Smith & Nephew is now ticking off the boxes one by one.
‘After a long period in the doldrums, its recovery efforts are now bearing fruit and it would make sense for the business to start to talk about the next phase of its career, rather than simply steadying the ship.’
Just as AstraZeneca sought to play down fears it will move to the US, Smith & Nephew said Rogers ‘will continue to spend a significant portion of his time at Smith & Nephew’s global headquarters in the UK, and at our sites around the world’.
The US made up nearly 54 per cent of the company’s revenue in 2024 and most of its manufacturing bases are in the US, helping it reduce the impact of Donald Trump’s tariffs on imports into the country.
Last week the US Commerce Department opened new national security probes into the import of medical equipment, among other goods.
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