Shell to Acquire Canadian Oil Producer ARC Resources for $13.6 Billion

Shell Agrees to Acquire ARC Resources for $13.6 Billion

In a move to bolster its oil and gas reserves and production, Shell Plc has agreed to acquire Canadian producer ARC Resources Ltd. for $13.6 billion. The acquisition, which is expected to close in the second half of 2026, subject to shareholder, court and regulatory approvals, will see ARC's high-quality, low-cost resource base complement Shell's existing business in Canada.

According to a statement made by Shell on Monday, the acquisition will be paid for with about 25% cash and 75% shares, at a premium of 20% to ARC's 30-day weighted average price. This move is part of a broader trend among oil majors to bolster their oil and gas resources as they refocus on their core business in a drive to boost returns to investors.

Shell has faced questions about whether its existing reserves are sufficient to sustain production into the coming decade. The acquisition of ARC Resources is expected to support Shell's target of sustaining material hydrocarbon liquids production of about 1.4 million barrels a day toward 2030 and beyond.

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The boards of both companies have unanimously supported the transaction, with Shell's Chief Executive Officer, Wael Sawan, stating that the acquisition establishes Canada as a heartland for the company while furthering its strategy to deliver more value with less emissions. The deal is expected to strengthen Shell's resource base for decades to come.

Following the announcement, Shell shares pared earlier losses and were trading 0.2% lower at 3,300 pence as of 1:19 p.m. in London.