Shell plc has completed the acquisition of ARC Resources Ltd (TSX: ARX) following receipt of all required shareholder, court and regulatory approvals. The transaction closes with an enterprise value of approximately US$16.5 billion.

The effective date of the transaction is September 2, 2026. Shell’s Chief Executive Officer Wael Sawan stated that the acquisition increases the company’s exposure to long-duration, low-cost liquids production in Canada’s Montney basin.

Deal Value and Funding

Based on Shell’s closing share price of GBP £34.43 on September 2, 2026, the equity value stands at approximately US$13.9 billion. This is funded via US$3.3 billion in cash and US$10.6 billion in new Shell shares.

Shell will assume approximately US$2.5 billion in net debt and leases from ARC Resources. The consideration for each ARC common share consists of CAD $8.20 in cash and 0.40247 ordinary shares of Shell plc.

Strategic Impact

The acquisition adds approximately 370 kboe/d immediately across liquids and gas. This supports a production compound annual growth rate (CAGR) of around 4% through to 2030 compared with 2025 levels.

The transaction is expected to be accretive to free cash flow per share from 2027 onwards. It complements Shell’s existing LNG footprint and extensive downstream businesses, including refining, chemicals, fuel retail, aviation, lubricants and low-carbon solutions.

Regulatory Context

In connection with the Arrangement Agreement, Shell obtained an exemption order from the Alberta Securities Commission and the Ontario Securities Commission. This provides relief from formal issuer bid requirements under National Instrument 62-104 Take-Over Bids and Issuer Bids for purchases of outstanding Shell Shares through marketplaces outside of Canada.

The exemption applies provided Shell Shares are not listed on any Canadian stock exchange and Canadian residents do not beneficially own more than 10% of issued and outstanding Shell Shares. Share buybacks must comply with securities laws in the United Kingdom, Netherlands and European Union.

Peter Costello, President of Upstream at Shell plc, disposed of ordinary shares on August 28, 2026. The transactions were executed across two European exchanges.

The disclosure was filed under the EU and UK Market Abuse Regimes. It details sales in both London and Amsterdam markets.

Transaction Details

Costello sold 31,786 shares on the London Stock Exchange at a price of £33.41 per share. This transaction generated a total value of £1,061,970.26.

Simultaneously, he disposed of 3,214 shares on the Euronext Amsterdam exchange. These were sold at €39.115 per share, totalling €125,715.61.

Both trades involved Ordinary shares of €0.07 each, identified by code GB00BP6MXD84. The filing marks an initial notification for these disposals.