Shell plc reached a definitive agreement to acquire Canadian producer ARC Resources Ltd. for US$13.6 billion. This cash-and-stock transaction marks Shell’s largest acquisition in more than a decade.
CEO Wael Sawan is using the purchase to expand fossil fuel reserves and refocus on core oil and gas operations. The strategy aims to enhance shareholder returns through high-margin production.
The deal establishes Canada as a primary operational heartland for the company. Shell will gain low-cost shale gas and liquid hydrocarbon assets in the Montney shale basin.
The acquisition is expected to sustain liquids production levels through 2030 and beyond. It also secures supply for the LNG Canada export project to serve Asian markets.
ARC Resources' share price rose significantly following the announcement.