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Kansas City Southern Railway stockholders today voted to approve the proposed merger with Canadian Pacific Railroad.
Of the 64.5 million shares voting at a special meeting, 99.6% were cast in favor of the adoption of the proposed agreement, KCS officials said in a press release.
The transaction is expected to close into a trust Dec. 14. KCS stockholders will receive $90 in cash and 2.884 CP shares for each KCS common share held and $37.50 in cash for each KCS preferred share held. Immediately upon close, ownership of KCS will be held in a voting trust pending the Surface Transportation Board’s review and approval of CP’s proposed control of KCS, which is expected to occur in the fourth quarter of 2022.
On Dec. 8, CP’s stockholders voted to approve the issuance of the CP common shares to KCS stockholders in connection with the proposed merger.
"This week, shareholders of both CP and KCS overwhelmingly supported this transformative proposal to create the first U.S.-Mexico-Canada rail network," said Keith Creel, CP president and CEO. "With strong shareholder support, we are excited to complete the steps required to close the CP-KCS transaction into the voting trust, a critical milestone in the journey to make Canadian Pacific Kansas City a reality."