LONDON, April 27, 2026 Shell buys ARC Energy for $16.4 billion
Shell has agreed to acquire Canadian energy company ARC Resources Ltd. for $16.4 billion, a move expected to strengthen its North American liquefied natural gas (LNG) business and generate double-digit returns from 2027.
Deal Structure and Terms
Under the terms of the acquisition, Shell will offer ARC shareholders $8.20 in cash and 0.40247 Shell shares per ARC share. The deal, valued at $16.4 billion, is set to enhance Shell’s production capacity significantly. ARC produced an average of 374,000 barrels of oil equivalent per day in 2025, making it a strategic addition to Shell’s portfolio.
The acquisition aligns with Shell’s broader strategy to expand its LNG operations, particularly in North America. Analysts predict the deal will increase free cash flow per share starting in 2027, providing long-term financial benefits for Shell shareholders.
Strategic Benefits for Shell
The purchase of ARC is expected to bolster Shell’s position in the competitive LNG market. By integrating ARC’s assets, Shell aims to streamline its North American operations and capitalize on growing global demand for natural gas.
Shell’s CEO highlighted the deal as a key step in the company’s energy transition strategy, emphasizing the role of LNG in reducing carbon emissions compared to traditional fossil fuels. The acquisition also positions Shell to meet rising energy needs while maintaining a focus on sustainability.