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A dual-listed company or DLC is a corporate structure which involves two listed companies with different sets of shareholders sharing ownership of one set of operational businesses.
In a conventional takeover one business acquires the shares of another. When a DLC is created, both companies continue to exist, and to have separate bodies of shareholders, but they agree to share all the risks and rewards of the ownership of all their operating businesses in a fixed proportion. This will be arranged through a complex set of contracts. Usually the two companies will share a single board of directors and have an integrated management structure. A DLC is something like a joint venture, but the two parties share everything they own, not just a single project. A joint venture is a business relationship between two or more parties to undertake economic activity together. ...
In virtually all cases the two companies are listed in different countries. There are often tax reasons for companies from different juristictions to choose DLC status, and once they have done so there can be major tax obstacles to cancelling the arrangement. Issues of national pride may sometimes also be involved; where both parties to a proposed merger or takeover are in a strong position and don't need to merge or accept a takeover, it can be easier to push it through it the country with the smaller business won't be "losing" its corporation.
Examples Some major dual-listed companies are listed below. One feature of note is that most leading dual listed companies are part British. BHP Billiton is the worlds largest mining company. ...
Brambles Industries is an Australian-headquarted multinational group of companies specialising in logistics, including waste management, document management, and other logistical issues. ...
Carnival Corporation & PLC (NYSE: CCL) is the worlds largest cruise operator, comprising 13 cruise brands, including Carnival Cruise Lines, Princess Cruises, Holland America Line, Windstar Cruises and Seabourn Cruise Line in North America; P & O Cruises, Cunard Line, Ocean Village and Swan Hellenic in the United Kingdom; AIDA and...
Reed Elsevier is a leading global publisher and information provider. ...
Rio Tinto is a multinational mining and resources group formed in 1995 from the merger of British-based miner RTZ and the Australian CRA. The two companies remain separate corporate entities, the renamed Rio Tinto Limited listed on the Australian Stock Exchange and Rio Tinto plc on the London Stock...
A Shell petrol station sign in the UK A Shell gas station in the US The Royal Dutch/Shell Group of Companies (called Shell Oil in North America) is a major oil company, one of the top four oil companies in the world (along with BP, ExxonMobil, and Total). ...
Unilever is an Anglo-Dutch company which owns many of the worlds consumer product brands in foods, beverages, cleaning agents and personal care products. ...
Companies which are listed on more than one stock exchange Many companies are listed on more than one stock exchange. Usually the shares on each exchange are all in the same company, and this is not the same as being a dual-listed company. The term co-listing or cross-listing is often used in this context. Generally such a company's primary listing is on a stock exchange in its country of incorporation, and its secondary listing(s) is on an exchange in another country. Co-listing is especially common for companies the started out in a small market but grew into a larger market. For example, large Canadian companies eventually co-list on the NYSE. New York Stock Exchange (June 2003) The New York Stock Exchange (NYSE) is one of the largest stock exchanges in the world. ...
In common usage, "dual-listed" may also be used in place of co-listed or cross-listed, causing confusion[1] (http://www.investopedia.com/terms/d/duallisting.asp)[2] (http://www.investorwords.com/1593/dual_listing.html) [3] (http://www.sovereignstandardofliberty.com/members/wealth%20mapping/content/investment%20terms.htm).
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