About 50 U.S.-listed companies are cross-listed on NYSE Euronext, the EU's largest regulated equities market. What they've discovered is that Euronext listings are ideal for U.S.-listed companies that want to diversify their shareholder base, gain a European trading presence or increase their market visibility in the eurozone, the world's second largest source of capital.
"Globalization means that companies, customers and suppliers have a presence in more locations than ever, and when these locations are in the eurozone, cross-listing on Euronext certainly increases the visibility of an enterprise or brand," says Marjorie Adams, chair of DLA Piper's capital markets group in the U.S.
CLF is North America's largest supplier of iron ore and a significant producer of metallurgical coal. It also has a presence in South America and the Asia Pacific region. But by listing with Paris-based Euronext, CLF put itself in the company of globally recognized mining and metals concerns including ArcelorMittal, Vale, Rio Tinto, AngloGold and Harmony Gold.
"All this means increased exposure for common shares and enhanced positioning as a global company," says David Freedman, who represented CLF on the listing. "It is also consistent with the company's ambition to build scale through diversification."
In Freedman's experience, the relatively new Fast Path process adds to the benefits by making cross-listing much easier.