Shell has agreed to acquire the Canadian company ARC Resources for $13.6 billion, in a deal that will expand the company’s oil and natural gas production.
According to Bloomberg, Shell noted that ARC has a high-quality, low-cost resource base that complements Shell’s existing operations in Canada.
The acquisition price will be paid approximately 25% in cash and 75% in shares, with a 20% premium relative to ARC’s 30-day weighted average price.
Major oil companies are seeking to bolster their oil and natural gas reserves as they focus on their core businesses in an effort to boost returns for investors.