This week, Ottawa threatened legal action after Stellantis said it would move it’s Jeep Compass assembly plant to Illinois. Stallantis made the move while outlining a 13 billion US dollar expansion in the United States. When incentives and politics shift, companies move first and argue about contracts after. With that lens, the Teck and Anglo deal looks like Canada may be trading leverage for scale, a trade that might only work for the country AND shareholders if safeguards are specific and enforceable. The share split, the trust blocks inside Anglo, and the asymmetric voting thresholds all tilt influence toward London. Ottawa is then tasked policing behaviour after the fact with undertakings and board seats, ultimately very thin leverage if the cycle turns. Between Automotive and energy, we’ve seen this before… The only question is, will this be another Canadian head office lost to a foreign takeover?
The Split, the Trusts, and The True Influence
On paper, Anglo America holders get 62.4 percent and Teck Resources holders get 37.6 percent, see the deal terms. Inside Anglo, about 99 million shares sit in three trusts. That is roughly 8.4 percent of the register. Treat that as a swing block, not a footnote.
The trust block is large enough to swing outcomes. Eight point four percent can decide a contested vote.
Anglo executives have downplayed the trusts as a red herring and said they “behave like treasury shares” in the Globe and Mail. That is management’s view, not a legal label. Company materials say the trusts have waived their voting rights. Dividend waivers have been used in specific cases, for example when calculating a special dividend.
Teck’s investor presentation repeats the voting point, but as we all know, today’s settings are not the permanent rules. Waivers sit inside trust deeds and company paperwork, they can lapse or be amended. Calling them “treasury like” is spin, actual treasury shares are held by the company, they cannot vote and do not receive dividends. These are issued shares held by investment companies tied to charitable trusts, neutral today because of waivers.
If we needed any proof that the markets push companies who always drive toward shareholder value, Stellantis has made a solid move for investor relations, but at the cost of short term public relations. On this split and with the 8.4 percent trust block, who actually gains, Anglo’s holders or Teck’s?
Why 8.4 percent matters in practice:
- In a tight election or a capital change, 8.4 percent is a kingmaker. If neutrality is not permanent and binding, count it as potential voting power located in London.
- Rights issues and buybacks can change who holds influence. If the trusts participate or are excluded, the result can tilt control.
- If the status of the trusts can be changed by board action alone, investors have less protection than they may think.
The practical ask: Put the trust mechanics in writing. Make neutrality permanent unless a full shareholder vote approves a change, with a separate class vote for Canadian holders. Disclose who controls the deeds, how amendments work, and how the trusts will be treated in any rights issue, buyback, material M and A, or poison pill.
On approvals, Teck needs two thirds of Class A and two thirds of Class B, voting separately. At Anglo, the share issuance passes with a simple majority. That asymmetry puts the heavier lift on Canadian institutions.
Undertakings, Timing, and Ottawa’s Test
The parties have promised a Vancouver head office and at least 4.5 billion dollars of Canadian investment over five years. These commitments sit under the Investment Canada Act.
When we look at this soberly, Canada’s auto decline will only continue: many undertakings expire after five years, which is shorter than a copper cycle. Enforcement usually depends on ministerial discretion, not a court order. The deal is a nil premium, all share exchange. Meaning no price above the pre-announcement market price and the payment is stock, not cash. Teck holders will swap into the combined company at a fixed ratio, at a set number of new shares for each Teck share.
The announcement came on September 9, 2025, and on October 8, 2025 Teck cut guidance at QB2. That sequence asks holders to accept no premium while underwriting fresh execution, integration, and commodity price risk.
On trading, the combined company keeps its primary listing in London and will also list in Toronto, with additional listings planned on the JSE and NYSE as ADRs, subject to exchange approvals. Extra venues can add liquidity, but do not add leverage in a dispute.
What Matters From Here?
The split and the 8.4 percent trust block are already on the table. The question now is whether the final paperwork nails down durable guardrails and ensures permanent neutrality. Trust issues aside, the deal in general needs to be scrutinized further to see if Canada and shareholders are indeed getting the best value.
Ottawa sounds unconvinced. Industry Minister Mélanie Joly said the current promises do not go far enough.
“I think right now that it is not enough, and also we need to think about longer term, and how can we make sure that ultimately we create jobs, but we have a strong headquarters, not only now, but also for the next decades,” she said.
Prime Minister Mark Carney pressed for a Canada headquarters as a condition for approval. Even with a Canadian head office, the primary listing would remain in London.
Stellantis is a warning. Companies follow shareholder incentives before Canadian rules. Ottawa promised elbows up last fall and this deal might be the moment to do it. This merger is the test, not only for Canada, but for investors. If the circulars have real teeth on governance, capital, and the 8.4 percent trust block, Canada can trade points for power. If not, gravity shifts to London and the head office follows.
