KCS shareholders back merger with Canadian Pacific

KANSAS CITY, Mo. — Kansas City Southern shareholders today overwhelmingly approved the railway’s proposed merger with Canadian Pacific.

Some 99.6% of shareholders who voted at a special meeting today approved the $31 billion deal.

The transaction is expected to close on Dec. 14.

After closing, 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.

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.

CP’s shareholders approved the KCS merger deal on Wednesday.

“This week, shareholders of both CP and KCS overwhelmingly supported this transformative proposal to create the first U.S.-Mexico-Canada rail network,” CP CEO Keith Creel said in a statement. “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.”