ARC shareholders back Shell takeover

Near-unanimous vote moves Shell closer to its largest acquisition in a decade.

Shareholders of Canadian natural gas producer ARC Resources have overwhelmingly approved Shell's $16.4 billion acquisition of the company, clearing one of the final major hurdles before the landmark energy deal can close.

The transaction was supported by 99.54% of votes cast at the special shareholder meeting, according to a press release, signaling broad investor backing for the acquisition despite continued uncertainty across global energy markets.

The deal now awaits final approval from the Court of King's Bench of Alberta on July 15 before closing, which is expected in the second half of 2026.

The acquisition marks Shell's largest transaction since its purchase of BG Group in 2016 and significantly expands the energy major's position in Canada's prolific Montney shale formation.

The company has described natural gas as a key pillar of its long-term strategy, particularly as global demand for liquefied natural gas (LNG) continues to grow.

For ARC shareholders, the overwhelming approval reflects confidence that Shell's offer provides an attractive opportunity to realize value while maintaining exposure to the energy sector.

Under the agreement, investors will receive CAD8.20 in cash and 0.40247 Shell shares for each ARC share, or around 25% cash and 75% shares at a 20% premium to ARC’S average share price.

Investors will now turn their attention to the remaining legal and regulatory steps before completion, as well as Shell's plans for integrating ARC's operations into its North American business.

The market will also be watching whether the acquisition encourages further consolidation across the energy sector as companies compete for premium natural gas assets.

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