Shell has agreed to acquire Canada's ARC Resources for $16.4 billion
The British-Dutch company Shell has announced the acquisition of the Canadian oil and gas company ARC Resources, which operates in the Montney shale basin. The total value of the deal is approximately $16.4 billion, including debt.
As noted in Shell’s press release, the companies have entered into a definitive agreement under which ARC shareholders will receive 8.2 Canadian dollars and 0.40247 Shell shares for each share.
Based on the buyer’s share price at the close of trading on April 24, the proposed price represents a 20% premium to the 30-day volume-weighted average price of ARC shares.
Shell will also assume the Canadian company’s net debt and lease obligations totaling approximately $2.8 billion.
Shell’s statement notes that the acquisition of ARC will enable it to increase production by 370,000 barrels of oil equivalent per day.
The deal, which has already been unanimously approved by the boards of directors of both companies, is expected to close in the second half of this year.
Shell’s stock price fell 0.3% during trading in the Netherlands on Monday.
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