Shell plc said on Wednesday it had completed the acquisition of ARC Resources Ltd. for an enterprise value of $16.5 billion, following receipt of all required regulatory, court and shareholder approvals.
The deal, valued at approximately $13.9 billion in equity, includes $2.5 billion of ARC’s net debt and lease obligations. Shell funded the equity portion with $3.3 billion in cash and $10.6 billion in newly issued shares, using a reference price of £34.43 per share.
ARC shareholders received CAD $8.20 in cash and 0.40247 Shell ordinary shares for each ARC common share. The share exchange process is expected to conclude within days of the effective date.
The acquisition adds about 370,000 barrels of oil equivalent per day to Shell’s portfolio, primarily from Canada’s Montney basin in British Columbia and Alberta. Management projects the deal will support a compound annual production growth rate of roughly 4% through 2030, compared with 2025 levels.
Shell expects the transaction to deliver double-digit returns and become accretive to free cash flow per share from 2027 onward. Chief Executive Wael Sawan said the company welcomed ARC’s workforce and aimed to leverage their operational expertise in the Montney basin.
The takeover marks Shell’s latest move to expand its North American upstream footprint amid a broader strategy to strengthen its liquids and gas portfolio.
