CHARLOTTE, N.C. — Shareholders of Six Flags Entertainment Corporation voted Tuesday to approve the merger with competing amusement park company Cedar Fair, which owns Carowinds.
The vote was approved by 80% of eligible shareholders. If approved by the Department of Justice, it would bring the namesake Six Flags parks into the same company as Cedar Fair properties including Carolina-based Carowinds, Ohio's Cedar Point, and Virginia's Kings Dominion.
Cedar Fair shareholders will not vote on the merger. TEGNA's VERIFY team found Cedar Fair shareholders would technically maintain 51% control of the new company. In this scenario, regulations do not require shareholders who maintain control of a combined company to vote on mergers. While this eliminates a procedural step, it also eliminates the opportunity for any Cedar Fair shareholders to oppose the merger.
"Given Cedar Fair [shareholders] will maintain more than 51% ownership of the combined company, the transaction does not require a [shareholder] vote in accordance with the terms of the Cedar Fair Partnership Agreement," a Cedar Fair spokesperson explained.
In 2019, reports indicated Six Flags was interested in acquiring Cedar Fair. Last year, the two companies announced the proposed plans to merge.
The merger will bring Six Flags' headquarters to Charlotte.
The combined company will be comprised of 42 amusement parks and nine resort properties across the U.S., Mexico and Canada. It also has a pro-forma enterprise value of approximately $8 billion based on both companies’ debt and equity values as of Oct. 31, 2023.
Pending DOJ approval, the merger could be finalized in 2024.
Tegna's WKYC contributed to this report