Shareholders of TerraForm Power (TERP) have voted in favor of merging with Brookfield Renewable Partners (BEP -0.47%), according to an announcement by both companies. As a result, Brookfield Renewable will acquire all the outstanding shares of TerraForm that it doesn't already own (it currently holds a 62% stake in the renewable energy producer).

The companies expect the all-equity merger to close on July 31. Current shareholders of TerraForm had the option to either receive 0.47625 units of Brookfield Renewable Partners or the same number of shares in the newly formed Brookfield Renewable Corporation

Several wind turbines in a field with a bright sun in the background.

Image source: Getty Images.

The merger will create one of the world's largest, independent pure-play renewable power companies, with 19,000 megawatts (MW) of installed capacity. Brookfield expects the merger to be immediately accretive to its cash flow while also simplifying its corporate structure and further expanding its portfolio in North America and Western Europe.

The combined company will also have an extensive 15,000 MW pipeline of development opportunities to power future growth. Furthermore, it will have one of the strongest investment-grade balance sheets in the renewable sector, including $3.4 billion of total liquidity, to support future expansion.

Brookfield Renewable Partners also announced that it plans to complete the distribution of shares in Brookfield Renewable Corporation to its investors, which should occur on July 30. They'll receive one exchangeable share for every four units they currently own. That entity "provides investors greater flexibility to invest in our business," according to CEO Sachin Shah.