Canadian Pacific Railway (TSX:CP) says that shareholders have approved its acquisition of U.S. railway Kansas City Southern.
CP Rail reported that its stockholders voted 99.9% in favour of issuing up to 278 million common shares to Kansas City Southern shareholders, a key step in the agreement.
Shareholders at the Calgary-based railway also approved changing its name to “Canadian Pacific Kansas City Ltd.” once the transaction is finalized.
CP Rail agreed in September to buy Kansas City Southern in a deal valued at $31 billion U.S., including the assumption of $3.8 billion U.S. of debt, following a testy battle with rival Canadian National Railway (TSX:CNR), which was also looking to acquire the American rail company.
U.S. regulators have approved the use of a voting trust for the transaction that allows Kansas City Southern shareholders to receive payment after shareholders of both companies approve the deal but before it receives final approval.
A special meeting of Kansas City Southern stockholders to vote on the merger is scheduled for later this week (December 10), and CP Rail says it expects the deal to close on December 14.