Shell acquires ARC Resources in $16.4 billion deal

Under the presumption of the deal, ARC shareholders volition person C$8.20 successful currency and 0.40247 of a Shell stock for each ARC stock — a full of C$32.80 per share. That represents a 27% premium to ARC's closing terms connected the Toronto Stock Exchange connected April 24. The information is structured 75% successful Shell shares and 25% successful cash.

Production of astir 370,000 barrels of lipid equivalent per time and reserves totaling 2 cardinal barrels travel with the acquisition, Reuters reported, with Shell projecting double-digit returns and higher escaped currency travel per stock opening successful 2027.

ARC is simply a pure-play shaper successful Canada's Montney basin, 1 of the country's largest shale state and liquids formations. Shell said the acquisition strengthens its integrated state concern and creates a level for maturation successful Canada, with imaginable to accelerate worth done its planetary liquefied earthy state infrastructure.

ARC's committee unanimously approved the transaction and recommended shareholders ballot successful favor. A peculiar gathering to o.k. the woody is expected successful July 2026, requiring support from astatine slightest two-thirds of votes cast. The transaction is besides taxable to regulatory approvals nether Canadian and U.S. contention and concern laws, and is expected to adjacent successful the 2nd fractional of 2026.

"ARC is simply a high-quality, low-cost and top-quartile debased c strength shaper that complements our existing footprint successful Canada and strengthens our assets basal for decades to come," Shell CEO Wael Sawan said successful a statement. "We look guardant to welcoming our caller colleagues into the enactment and together, furthering our strategy of delivering much worth with little emissions."

ARC CEO Terry Anderson said successful a connection that the transaction would let ARC to "realize this tremendous worth and go portion of a dynamic planetary vigor person susceptible of realizing the afloat imaginable of our business."

If the statement statement is terminated nether definite circumstances, ARC would beryllium Shell a $600 cardinal Canadian dollar termination fee. RBC Capital Markets is acting arsenic exclusive fiscal advisor to ARC and has provided a fairness sentiment connected the transaction. Shell Canada Limited, a wholly owned Shell subsidiary, is the acquiring entity.

ARC is expected to proceed paying its regular quarterly dividend of C$0.21 per stock until the woody closes, with the adjacent outgo anticipated July 15, 2026.