Shell Buys ARC Resources for $16.5 Billion to Bolster Canadian LNG Strategy

Shell has completed its acquisition of Canadian oil and gas producer ARC Resources in a deal worth approximately $16.5 billion. The transaction gives Shell a larger position in Canada's Montney basin, where it can expand its natural-gas and liquids production.

The deal also strengthens Shell's long-term liquefied natural gas (LNG) strategy in Canada. LNG Canada, the major export terminal on British Columbia's coast, is owned by Shell with a 40% stake.

Shell-ARC Resources Deal Terms: Under the final agreement, ARC shareholders receive C$8.20 in cash and 0.40247 ordinary Shell shares for each ARC common share. The deal had an updated equity value of approximately $13.9 billion based on Shell's September 2 closing share price.