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UK-headquartered energy giant Shell has made a move to strengthen its liquefied natural gas (LNG) arsenal through a multibillion-dollar cash‑and‑share deal for the acquisition of Canada-based ARC Resources.
Shell and its Canadian subsidiary have entered into a definitive arrangement agreement to acquire all of the issued and outstanding common shares of ARC Resources in a cash and share transaction valued at approximately $22 billion, including assumed net debt.
Terry Anderson, President and Chief Executive Officer of ARC Resources, commented: “Over our 30-year history, we have built a strong and resilient Canadian energy company defined by the depth of our world-class Montney assets, low-cost operations, leadership in responsible development, and high-performance people and culture.
“On behalf of our leadership team, I would like to thank our people for their dedication and commitment to excellence in all facets of our business. Through this transaction, we will realize this tremendous value and become part of a dynamic global energy leader capable of realizing the full potential of our business and delivering on Canada’s exciting energy future.”
The $32.80 per share purchase price, payable 75% in ordinary shares of Shell and 25% in cash, represents a 27% premium to the Canadian player’s April 24, 2026, closing price on the Toronto Stock Exchange (TSX).
As a result, the near-term liquidity to ARC shareholders in the form of cash with highly liquid Shell shares is perceived to provide upside exposure to an integrated global energy platform.
The agreement bolsters the UK energy giant’s integrated gas business and creates a new platform for growth in Canada by adding long‑duration, high‑quality Montney resource.
This acquisition is said to come with significant opportunities to unlock and accelerate LNG-related value through Shell’s integrated natural gas value chain, as scale, infrastructure footprint and global reach underpin enhanced long-term profitability.
The takeover has received unanimous approval by ARC’s board of directors, which recommends that shareholders vote for the transaction at a special meeting expected to be held in July 2026.
Hal Kvisle, Chair of the ARC Board, emphasized: “The ARC Board unanimously recommends this strategic transaction to our shareholders. This agreement delivers compelling value for our shareholders and brings together two companies with shared commitments to safety, operational excellence and care for communities and people – strengthening our ability to deliver resilient, long-term value creation for many years to come.”
The proposed acquisition is to be completed by way of a plan of arrangement under the Business Corporations Act (Alberta) (the ABCA) and, subject to satisfaction of conditions typical for a transaction of this nature, is expected to close in the second half of 2026.
Wael Sawan, Chief Executive Officer of Shell, underlined: “ARC is a high-quality, low-cost and top-quartile low carbon intensity producer that complements our existing footprint in Canada and strengthens our resource base for decades to come.
“ARC has demonstrated a strong track record of operational excellence and responsible development which aligns closely to how we do business. We look forward to welcoming our new colleagues into the organization and together, furthering our strategy of delivering more value with less emissions.”
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