S&P Dow Jones Indices is loosening the eligibility rules for its S&P/TSX Canadian Indices, letting some foreign-listed companies qualify for the first time. The change could keep copper producer Anglo Teck inside the benchmark once its merger with Teck Resources closes.
S&P Dow Jones Indices (S&P DJI) said on Friday it will change the eligibility criteria for the S&P/TSX Canadian Indices, a move that could open the door to the inclusion of major copper producer Anglo-Teck, according to investors. Under the new criteria, foreign issuers listed on the Toronto Stock Exchange but neither domiciled nor incorporated in Canada could qualify for inclusion if they have a material and substantive connection to Canada. Previously, only TSX-listed companies domiciled or incorporated in Canada were eligible. The S&P/TSX Canadian Indices include the TSX Composite, Canada's benchmark stock index.
Anglo American's $53 billion all-stock merger with TSX Composite constituent Teck Resources is expected to close between September and March. The deal would create the world's fifth-largest copper producer. Under the proposed structure, the combined company, Anglo Teck, will be headquartered in Canada but carry its primary stock listing in London.
The change follows a consultation with market participants that started in July. S&P DJI plans to implement the new rule on December 21, 2026. Fairbank Investment Management portfolio manager Robert Gill said it is highly likely Anglo Teck will be permitted to remain in the S&P/TSX Composite Index under the proposed methodology, citing the company's Vancouver headquarters and continued Canadian spending.
Source: Investing.com
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