Shell has agreed to buy Calgary-based ARC Resources for $16.4bn, its biggest acquisition since BG Group a decade ago. The deal pays $13.6bn in a mix of three-quarters Shell shares plus cash, and assumes $2.8bn in debt. The price represents a 20% premium to ARC's recent share price, which had been flat in 2026 after tripling over five years.
For Shell, the move is a U-turn on North American shale: the company sold its Permian Basin business to ConocoPhillips in 2021 for $9.5bn, and CEO Wael Sawan, in post since 2023, had so far steered clear of large M&A — including a long-discussed bid for BP. The acquisition adds 370,000 barrels of oil and gas per day, lifts Shell's annual production growth from 1% to 4%, and adds 2bn barrels to proved-and-probable reserves. ARC mainly produces gas and condensate (a light liquid used in refining and to make ethylene), feedstock that could supply LNG Canada, the $40bn liquefied-natural-gas plant on the country's west coast in which Shell holds 40%.
Canada's oil sector is in a bumper year — Enverus expects a C$90bn (US$66bn) windfall if oil stays above $100/bbl — a backdrop helping Shell push its LNG-trading dominance (more than 30% of global capacity, world's largest trader). ARC shares jumped 22% to C$31.51 on the announcement; Shell shares were flat. Source: Financial Times, 27 April 2026, Malcolm Moore, Jamie Smyth and Ilya Gridneff.