CDPQ and other investors pressure the company to keep its headquarters in Canada, leading to a reversal
TFI International Inc., a Montreal-based transportation and logistics company, has reversed its decision to move its legal domicile from Canada to the United States, according to Financial Post.
This change comes shortly after the initial announcement and follows significant feedback from shareholders, notably the Caisse de dépôt et placement du Québec (CDPQ), as reported by The Wall Street Journal.
Last week, TFI announced plans to re-domicile to the US, citing that approximately 70 percent of its operations and a significant portion of its shareholders are based there.
However, this move was met with dissatisfaction from CDPQ, a major shareholder holding over 4 percent of TFI's shares.
CDPQ emphasized the importance of preserving Quebec's interests and expressed that the company had not informed them of its intentions
In response to the feedback, TFI issued a brief statement: “Based on feedback from shareholders received to date, TFI International will remain a Canadian corporation and will not pursue its previously announced intention to re-domicile from Canada to the United States.”
Industry experts have weighed in on the situation.
Richard Leblanc, professor of governance, law, and ethics at York University, noted that companies typically consult major investors before making significant decisions.
He described this event as “a teachable moment” for Canadian businesses, highlighting the importance of considering political and shareholder reactions before committing to major decisions.
The backdrop of this decision includes heightened Canadian patriotism and economic concerns due to potential US tariffs.
US President Donald Trump has threatened to impose 25 percent tariffs on most Canadian imports, leading to fears of economic repercussions.
Bank of Canada Governor Tiff Macklem warned that a prolonged trade conflict with the US could cause severe damage to the Canadian economy
According to Truck News, TFI initially planned to relocate after acquiring Daseke Inc., a US-based flatbed trucking company, for US$1.1bn in April 2024.
The acquisition expanded TFI’s US presence and included contracts with the US Department of Defense, which would have been easier to manage as a US-domiciled business.
Despite the reversal, TFI maintains a strong presence in the US, with 70 percent of its operations based there.
The company continues to trade on both the New York Stock Exchange and the Toronto Stock Exchange, reflecting its significant North American footprint.
