Shell Bets $22 Billion on Canadian Gas as ARC Shareholders Face Decisive Vote

By Tahani Elghazaly
Published July 13, 2026

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Shareholders of Canadian energy producer ARC Resources are set to vote on Tuesday, July 14, 2026, on Shell’s proposed acquisition of the company in a deal valued at approximately C$22 billion, including net debt.

The transaction could significantly strengthen Shell’s position in Western Canada and expand its access to one of North America’s most important natural gas-producing regions.

The special shareholders’ meeting will be held virtually at 10 a.m. Mountain Time. Approval requires support from at least two-thirds of the votes cast. ARC’s board of directors has unanimously recommended that shareholders approve the deal, which has also received backing from proxy advisory firms ISS and Glass Lewis.

Under the agreement, ARC shareholders would receive C$8.20 in cash and 0.40247 Shell shares for each ARC share they own. The offer was valued at C$32.80 per share when the transaction was announced, representing a premium of approximately 27 per cent over ARC’s previous closing price.

The strategic importance of the acquisition lies in ARC’s assets in the Montney formation, which stretches across Alberta and British Columbia and is considered one of the richest natural gas and natural gas liquids regions in North America.

Shell expects the acquisition to add approximately 370,000 barrels of oil equivalent per day to its production portfolio. About 60 per cent of that output is expected to come from natural gas, with the remaining 40 per cent consisting of liquids.

ARC’s operations are located close to Shell’s existing Western Canadian assets and infrastructure connected to the LNG Canada export project. Shell owns a 40 per cent stake in LNG Canada, giving the company a direct route to supply international markets, particularly customers in Asia.

The acquisition would allow Shell to control a larger portion of the energy supply chain, from upstream gas production in Western Canada to processing, liquefaction and overseas exports.

The transaction is also one of Shell’s largest acquisitions since its purchase of BG Group in 2016. The company expects the deal to add reserves of roughly two billion barrels of oil equivalent and generate annual savings of approximately US$250 million once the businesses are integrated.

However, the proposed takeover has also raised questions about the future of ARC as an independent Calgary-based company, as well as the impact on Canadian jobs, investment and corporate decision-making.

ARC has said Shell intends to maintain a significant operational presence in Western Canada, integrate ARC employees into its Canadian business and continue investing in local and Indigenous communities.

Shareholder approval would not immediately complete the transaction. The deal would still require approval from the Alberta court and regulatory authorities responsible for competition and foreign investment reviews in Canada and the United States.

Subject to the required approvals, Shell and ARC expect the acquisition to close during the second half of 2026.