Shell SHEL-N on Monday said it has agreed to acquire Canadian energy company ARC Resources ARX-T in a deal valued at US$16.4-billion, including debt, as it seeks to expand its portfolio with low-cost shale gas and liquids in Canada’s Montney basin.
Under the deal, the energy major will pay ARC’s shareholders $8.20 in cash and 0.40247 Shell shares for each ARC share.
Shell said the deal, which adds about 370,000 barrels of oil equivalent per day of production and 2 billion barrels of reserves, would generate double-digit returns and boost free cash flow per share from 2027.
