Aramco shuns London for Tokyo

STATE-controlled oil giant Saudi Aramco is poised to snub London and instead choose Tokyo for a blockbuster stock market float.

In a blow to the UK, the world’s biggest company is said to have lost its enthusiasm for the City because of the rising chance of a No Deal Brexit.

And Hong Kong, once another top contender, is also thought to have been ruled out because of the political crisis that has been gripping the Chinese territory for months.

It means Aramco, which is controlled by the Saudi Arabian government, is leaning towards Tokyo for its highly-anticipated stock market debut. This will be part of a two-stage process, with the firm reportedly plotting to initially list its shares at home before proceeding with an international float in either 2020 or 2021, according to the Wall Street Journal.

If confirmed, the move would be an embarrassment for ministers and officials who have spent years lobbying their Saudi counterparts over the deal.

But although London was seen as a favourite for the float when Saudi Crown Prince Mohammed Bin Salman visited last year, Aramco bosses are said to be concerned by uncertainty surrounding the UK’s exit from the EU.

They fear a departure without a deal could cause British regulators to align more closely with their US counterparts – potentially making Aramco vulnerable to legal action from victims of the 9/11 terror attacks in New York. A US congressional inquiry found links between Saudi Arabia and the terrorists although its official report was heavily redacted and has never been published in full.

The claim Aramco was set to choose Tokyo for its listing was not immediately denied by the company yesterday.

It said it ‘continues to engage’ with the Saudi government on plans for the float.

Last night a spokesman for the Treasury declined to comment.

The London Stock Exchange also declined to comment.