British energy giant Shell announced on Monday it would acquire Canadian firm ARC Resources in a $16.4 billion deal, which would see it boost its access to shale gas and liquids production.
"This establishes Canada as a heartland for Shell while furthering our strategy to deliver more value with less emissions," said Shell CEO Wael Sawan in a statement.
The buyout would value ARC at about $13.6 billion, while Shell would also take on some $2.8 billion in net debt, to give a total purchase price of some $16.4 billion.
"We are accessing uniquely positioned assets and welcoming colleagues that bring deep expertise, which, combined with Shell's strong basin-level performance, provides a compelling proposition for shareholders," said Sawan.
The boards of both companies had approved the sales, Shell said in a statement, "which is expected to close in the second half of 2026," subject to final approvals.
ARC's operations are located in the same region as Shell's existing Groundbirch asset in western British Columbia and Gold Creek in the neighbouring province of Alberta.
"ARC is combining with a company that has a global portfolio of best-in-class assets," said ARC president and CEO Terry Anderson.
"I'm excited that ARC's assets and world-class people will play an important role in helping Shell to further strengthen Canada's resource landscape whilst also providing the secure energy that the world needs."
Last year, ARC produced the equivalent of 374,000 barrels per day (bpd).
