The sale, which closed on Tuesday, places the shares of the American railway in a voting trust while the United States Surface Transportation Board reviews the deal.
With the completion of the acquisition, KCS shareholders will receive 2.884 CP shares and US$90 in cash for each KCS common share held and US$37.50 in cash for each KCS preferred share held. The expected benefits from the railway to be known as Canadian Pacific Kansas City Ltd. will not be realized until the U.S. regulator approves the deal, the companies said.
"CPKC will become the backbone connecting our customers to new markets, enhancing competition in the U.S. rail network, and driving economic growth across North America while delivering significant environmental benefits," he said in a release.