Rio Tinto Shareholders Reject Proposal to Ditch London Listing

Rio Tinto shareholders overwhelmingly rejected an activist proposal to scrap the company’s dual London-Australia listing, opting to maintain its current market structure due to concerns over significant tax costs and potential negative impacts on shareholder value. Over 80% of votes were against the move, which was led by Palliser Capital, who argued Rio Tinto should follow rivals like BHP in consolidating its listing in Australia. The board and most investors cited billions in potential tax liabilities and the importance of the London market, especially given the high proportion of UK-based shareholders. The decision comes amid broader concerns about the London Stock Exchange’s ability to retain major firms, following similar moves by other mining giants. Rio Tinto’s management reaffirmed their stance that unification is not in shareholders’ best interests and pledged ongoing engagement with investors. The vote reflects both the financial and strategic considerations at play in maintaining dual listings for multinational companies.