Shell, ARC Resources LTD agree to billion dollar sale

FORT ST. JOHN, B.C. — Shell Canada has agreed to purchase Canadian energy company ARC Resources LTD for over $20 billion. 

On April 27th, 2026, ARC Resources LTD announced in a release it had entered a ‘definitive arrangement agreement’ with Shell Canada Limited. 

Under the agreement, ARC Shareholders will receive a fraction of 0.40247 of a Shell Share and $8.20 in cash in exchange for each ARC share.

According to the announcement, Shell has agreed to acquire issued and outstanding common shares of ARC, which hold an approximate value of $22 billion. 

Terry Anderson, president and chief executive officer of ARC Resources LTD, said the sale could positively impact the company’s growth.

“Through this transaction, we will realize this tremendous value and become part of a dynamic global energy leader capable of realizing the full potential of our business and delivering on Canada’s exciting energy future.” 

Wael Sawan, Shell Chief Executive Officer, said ARC is a company with a strong operational history.

“ARC is a high-quality, low-cost and top-quartile low carbon intensity producer that complements our existing footprint in Canada and strengthens our resource base for decades to come,” said Sawan. 

“ARC has demonstrated a strong track record of operational excellence and responsible development which aligns closely to how we do business. We look forward to welcoming our new colleagues into the organization and together, furthering our strategy of delivering more value with less emissions.” 

The proposed transaction will be brought into effect once the plan or arrangement is approved by the Court of King’s Bench of Alberta, according to the release.

In March 2026, to lead negotiations on the proposed transaction with Shell, ARC formed a special committee of independent directors. 

After considering the recommendation by the Special Committee and after consulting with financial and legal advisors, the ARC board ruled the sale is in the best interests of ARC, and that it is fair to its shareholders. 

According to the release, the proposed transaction is set to close in the second half of 2026, once it receives approvals under the Competition Act, the Investment Canada Act, the Canada Transportation Act and the Hart-Scott-Rodino Antitrust Improvement Act. 

The sale must also be approved by 66 per cent of ARC Shareholders present in person or represented in proxy at a special ARC shareholders meeting expected to be held in July 2026.