A planned rule change could reshape Canada’s benchmark index, just as a major copper merger prepares to create a new global mining giant.
S&P Dow Jones Indices will change the eligibility criteria for companies seeking inclusion in Canada’s S&P/TSX indices. This could pave the way for major copper producer “Anglo-Teck” to be included after it completes its deal with Canadian mining company Teck Resources.
As stated by Reuters
Under the new rules, foreign issuers whose shares are listed on the Toronto Stock Exchange will be eligible for inclusion in the indices even without legal incorporation or headquarters in Canada. To qualify, they must have a significant and meaningful connection to the country.
Previously, only companies incorporated or founded in Canada were eligible for inclusion in the Canadian indices. The S&P/TSX Canadian Indices include the S&P/TSX Composite Index, Canada’s main stock-market benchmark.
The “Anglo-Teck” deal and prospects for index inclusion
Anglo American is expected to complete its deal with Teck Resources between September 2026 and March 2027. The transaction involves a share-for-share merger that will create the world’s fifth-largest copper producer.
The new company will be headquartered in Canada, although its primary listing will be in London. This feature could previously have prevented it from being included in the Canadian stock-market index.
It is extremely likely that “Anglo-Teck” will be able to remain in the S&P/TSX Composite Index under the proposed methodology. Its connection to Canada remains exceptionally strong: the company will be headquartered in Vancouver and is expected to make significant expenditures in Canada for the foreseeable future.
– Robert Hill, portfolio manager at Fairbank Investment Management
When the new criteria will take effect
The changes were prepared following consultations with market participants that began in July. They are scheduled to take effect on December 21, 2026.
The new rules could make it easier for large international companies with a significant presence in Canada to be included in Canadian indices, even if their shares are primarily traded abroad.
Read More: S&P Dow Jones Changes Canadian Index Rules, Clearing Path for Anglo-Teck |