Shell agreed on 27 April to buy ARC Resources, a natural gas and liquids producer focused on the Montney basin in British Columbia and Alberta, in a deal it valued at $16.4bn including net debt and leases.
Why Shell plc is buying ARC Resources Ltd.
Shell chief executive Wael Sawan called ARC a high-quality, low-cost producer with top-quartile low carbon intensity that would strengthen Shell's resource base for decades. Shell said the deal adds roughly 370,000 boe a day and supports production growth of about 4% a year through 2030 compared with 2025.
“we will realize this tremendous value and become part of a dynamic global energy leader”
Deal terms and financing
ARC shareholders receive 0.40247 Shell shares and C$8.20 in cash per share, worth C$32.80 at announcement and a 27% premium to the 24 April close. Including assumed net debt, ARC put the transaction at about C$22bn. At completion, Shell said the equity value was about $13.9bn, funded with $3.3bn of cash and $10.6bn of new Shell shares.
Regulatory approvals and timing
The arrangement needed two-thirds approval from ARC shareholders, sign-off from the Court of King's Bench of Alberta, and clearance under the Competition Act, Investment Canada Act, Canada Transportation Act and US Hart-Scott-Rodino Act. Shell said on 3 September that it had completed the acquisition on 2 September 2026 after receiving all required approvals.
Market context
Shell had been adding production through smaller purchases, spending about $2bn on assets in 2025, before agreeing this larger deal for one of Canada's biggest Montney gas producers.
