The merger between Canadian Pacific (CP) and Kansas City Southern (KCS) is a step closer to fruition with the announcement that CP shareholders have voted in favour of the merger agreement.
This follows shortly after regulatory pre-transaction control approval from Mexican authorities was granted earlier this month.
At a special meeting of CP shareholders on 8 December, votes were held to approve the issue of up to 277,960,197 common shares as the share consideration under the terms of the merger agreement, and to approve an amendment to CP’s articles of incorporation to change its name to Canadian Pacific Kansas City Limited.
This change is dependent on the US Surface Transportation Board’s (STB) approval of the proposed merger.
Results of both votes were overwhelmingly in favour of the proposed actions, with more than 99% of shareholders voting in support of the changes.
“The shareholder approvals are a key step on our path to this once-in-a-lifetime partnership to create the first US-Mexico-Canada rail network. This is a transformative opportunity for CP, KCS and the North American economy.
“The overwhelming support our shareholders have given to the transaction is critical to making this combination a reality. In the coming days, we will be working to complete the steps required to close into the voting trust, and in the months ahead we look forward to participating in the STB’s comprehensive regulatory review.
“Following receipt of STB approval and consummation of CP control, Canadian Pacific Kansas City will add new capacity to the US rail network, create new competitive transportation options, support North American economic growth, and deliver other important benefits to customers, employees, and the environment.”
The KCS shareholders meeting takes place on 10 December.
