Shell completes acquisition of Arc Resources for $16.5 billion in Canada

An acquisition finalized after regulatory approval

Shell plc has completed the acquisition of ARC Resources Ltd. (TSX: ARX), an energy company operating in British Columbia and Alberta, Canada. The transaction's effective date is set for September 2, 2026.

The transaction immediately adds approximately 370 kbep/d split between liquids and gas, and supports an annual production growth rate of approximately 4% through 2030 compared to 2025. It strengthens Shell's producing interests in Canada and complements its LNG footprint as well as its downstream operations (refining, chemicals, fuel distribution, aviation, lubricants and low-carbon solutions).

An enterprise value of approximately $16.5 billion

Under the terms of the agreement (Arrangement Agreement), ARC shareholders will receive $8.20 Canadian dollars in cash and 0.40247 ordinary shares of Shell plc for each ARC ordinary share. Based on Shell's closing share price of 34.43 pounds on September 2, 2026 and the latest exchange rates, this equates to an adjusted equity value of approximately $13.9 billion.

Shell will also assume approximately $2.5 billion in net debt and lease obligations, bringing the enterprise value to approximately $16.5 billion. The equity value of $13.9 billion will be financed through $3.3 billion in cash and $10.6 billion in new Shell shares.

Expected financial effects and regulatory exemption in Canada

According to Shell, the transaction is expected to generate double-digit returns, strengthen long-term cash flows and be accretive to free cash flow per share from 2027 onwards. Delivery of Shell shares in exchange for ARC shares is anticipated in the days following the effective date.

As part of the agreement, Shell obtained an exemption order from the Alberta Securities Commission and the Ontario Securities Commission, exempting it from the formal requirements applicable to issuer bids (National Instrument 62-104) for repurchases of its own shares effected on markets outside Canada. This exemption applies as long as Shell shares are not listed in Canada and Canadian residents do not hold more than 10% of the total Shell shares issued and outstanding. The measurement of the acquired assets and liabilities will be subject to a purchase price allocation exercise following completion.