Key facts
- S&P Dow Jones Indices will change eligibility criteria for S&P/TSX Canadian Indices.
- Foreign issuers listed on the Toronto Stock Exchange with a material connection to Canada may now qualify for inclusion.
- Previously, only Canadian-domiciled or incorporated companies were eligible.
- The changes are expected to allow Anglo American's proposed merger with Teck Resources to result in the new entity, Anglo Teck, remaining in the S&P/TSX Composite Index.
- Anglo Teck will be headquartered in Canada but have a primary stock listing in London.
- Implementation of the new criteria is planned for December 21, 2026.
S&P Dow Jones Indices (S&P DJI) announced on Friday that it will modify the eligibility criteria for its S&P/TSX Canadian Indices. This adjustment, set to be implemented on December 21, 2026, follows a consultation with market participants launched in July. The revised rules will permit foreign companies listed on the Toronto Stock Exchange to be included in the indices if they demonstrate a substantial connection to Canada, a departure from the previous requirement that companies be domiciled or incorporated in Canada.
Investors anticipate that this change will enable Anglo Teck, the entity to be formed from Anglo American's proposed $53 billion all-stock merger with Teck Resources, to remain in the S&P/TSX Composite Index. The merger, expected to close between September and March, will create the world's fifth-largest copper producer. While Anglo Teck will be headquartered in Canada, its primary stock listing will be in London.
Robert Gill, a portfolio manager at Fairbank Investment Management, stated that Anglo Teck will "highly likely" be permitted to remain in the S&P/TSX Composite Index due to its "unusually strong" attachment to Canada, citing its Canadian headquarters and significant economic footprint. The S&P/TSX Canadian Indices include the TSX Composite, Canada's benchmark stock index.