Shell to Acquire ARC Resources for US$16.4B

Shell Plc announced on Monday an agreement to acquire ARC Resources Ltd., a Calgary-based energy producer focused on the Montney formation in western Canada, in a deal valued at approximately US$16.4 billion including net debt.

The transaction carries an equity value of about US$13.6 billion and will be funded with roughly 25 percent cash and 75 percent Shell shares. ARC shareholders will receive C$8.20 in cash and 0.40247 Shell shares for each ARC share, representing a premium of around 20 percent to ARC's 30-day average share price and 27 percent to its Friday closing price on the Toronto Stock Exchange. Shell will assume approximately US$2.8 billion in ARC's net debt and leases, bringing the total enterprise value to US$16.4 billion, or about C$22 billion.

The deal, unanimously approved by both companies' boards, is expected to close in the second half of 2026, pending ARC shareholder approval, court sanction and regulatory clearances including under Canada's Investment Canada Act.

For Shell, the acquisition adds 370,000 barrels of oil equivalent per day to its production, combining ARC's 1.5 million net acres in the Montney region with Shell's existing 440,000 acres there....