Shell acquires ARC Resources for $16.4B in major deal

Shell acquires ARC Resources for up to $16.4B, adding 2B barrels in reserves and 374,000 barrels/day in production. The deal, 75% in shares and 25% in cash, is expected to close in 2026.

Shell has announced the acquisition of ARC Resources, a Canadian energy company, in a deal valued at up to $16.4 billion, including debt and leases. ARC shareholders will receive CAD 8.20 in cash and 0.40247 Shell common shares for each ARC share, representing a premium of up to 27% over the recent price. The transaction, structured as 75% in shares and 25% in cash, will add nearly 2 billion barrels of proved and probable reserves to Shell’s portfolio, along with approximately 374,000 barrels of oil equivalent per day in production. The deal is expected to increase free cash flow per share starting in 2027 and generate annual synergies of around $250 million. Marking Shell’s largest move in a decade and a strategic shift toward low-risk Canadian assets, the agreement is subject to shareholder and regulatory approval, with closing anticipated in the second half of 2026. Key risks include regulatory hurdles and oil and gas price volatility.