Shell has completed its acquisition of Canadian energy company ARC Resources after securing all required shareholder, court and regulatory approvals, strengthening its upstream portfolio in British Columbia and Alberta.

The transaction adds approximately 370,000 barrels of oil equivalent per day (kboe/d) of liquids and gas production to Shell’s portfolio and is expected to support production compound annual growth of around 4 per cent  through 2030, compared with 2025.

Under the agreement, ARC shareholders receive C$8.20 in cash and 0.40247 Shell ordinary shares for each ARC common share.

Based on Shell’s September 2 closing share price and latest foreign exchange rates, the deal represents an equity value of approximately $13.9 billion.

Shell will also assume around $2.5 billion in net debt and leases, bringing the transaction’s enterprise value to approximately $16.5 billion.

The equity consideration is being funded through $3.3 billion in cash and $10.6 billion in newly issued Shell shares.

Shell said the acquisition is expected to generate double-digit returns while strengthening long-term cash flows.

The deal is also expected to be accretive to free cash flow per share from 2027 onwards, supporting the company’s broader growth strategy and expanding its exposure to Canadian energy production.

“Today we welcome ARC colleagues to Shell and look forward to building on their high-performance culture, operational excellence and technical expertise in Canada’s Montney basin,” said Shell’s Chief Executive Officer, Wael Sawan. “The acquisition increases Shell's exposure to long-duration, low-cost liquids production. Through disciplined integration, we will build on the strengths of both organizations to unlock the value that underpins this transaction.” -OGN/TradeArabia News Service