British energy giant Shell has completed its acquisition of Canadian energy company ARC Resources, in a deal valued at approximately $16.5 billion, including debt and leases, the company announced Wednesday.
The acquisition adds around 370,000 barrels of oil equivalent per day (boe/d) of liquids and natural gas production to Shell's portfolio, strengthening its operations in Canada's Montney basin across British Columbia and Alberta.
Shell expects the additional output to support a compound annual production growth rate of around 4% through 2030 compared with 2025 levels.
"The acquisition increases Shell's exposure to long-duration, low-cost liquids production," Shell CEO Wael Sawan said, adding that the company aims to combine the strengths of the two businesses to unlock further value from the transaction.
Under the terms of the agreement, ARC shareholders will receive CAD 8.20 in cash (about $5.90) and 0.40247 Shell ordinary shares for each ARC common share they hold.
Based on Shell's closing share price of £34.43 (about $46.47) on Sept. 2 and prevailing exchange rates, the transaction gives ARC an equity value of approximately $13.9 billion.
Shell will also assume around $2.5 billion in net debt and leases, bringing the total enterprise value of the acquisition to approximately $16.5 billion.
The $13.9 billion equity consideration will be financed through $3.3 billion in cash and $10.6 billion in newly issued Shell shares.
Shell expects the acquisition to deliver double-digit returns, strengthen its long-term cash flows and contribute positively to free cash flow per share from 2027.
By Duygu Alhan
Anadolu Agency
energy@aa.com.tr
