Shell to acquire Canada’s ARC in output-boosting $16.4 billion deal

Anglo-Dutch oil major Shell said it has agreed to acquire Canadian company ARC Resources for $16.4 billion, a deal that strengthens its strategy to expand in shale gas and its presence in North America.

The transaction is structured as about $3.4 billion in cash, roughly $10.2 billion in Shell shares, and approximately $2.8 billion in debt and leases, the company said in a statement.

Shell said the deal will allow it to immediately increase production by around 370,000 barrels of oil equivalent per day and lift its average annual growth to 4% through 2030, up from the previously expected 1%.