Shareholders of ARC Resources have given their backing to Shell’s $16.4bn (£12.7bn) takeover bid, the companies confirmed on Friday. The vote, held at a special meeting, saw a majority of ARC’s shareholders approve the all-cash offer, which values the Canadian oil and gas producer at approximately $16.4bn including debt. The acquisition is one of the largest in Shell’s recent history and underscores the FTSE 100 giant’s pivot towards gas as a transition fuel.
The deal, first announced in April 2026, will give Shell control over ARC’s extensive Montney shale gas assets in British Columbia and Alberta. These resources are expected to feed Shell’s LNG Canada export terminal, which is currently under construction near Kitimat. Analysts at RBC Capital Markets described the vote as “a key de-risking event” for Shell’s North American gas strategy, noting that the acquisition could boost Shell’s LNG output by roughly 10% once fully integrated.
On the London Stock Exchange, Shell shares traded largely flat on Friday at 2,845p, reflecting the widely anticipated outcome. The FTSE 100 index edged up 0.2% to 8,215 points, supported by gains in energy and mining stocks. The broader FTSE 250 index rose 0.1% to 21,040. For UK pension holders and investors, the deal highlights Shell’s commitment to growing its gas portfolio, which may offer stable cash flows and dividends in the years ahead, though the company faces ongoing scrutiny over its climate transition plans.
The acquisition still requires clearance from Canadian regulators, including under the Investment Canada Act, and is expected to close in the fourth quarter of 2026. Some analysts have raised concerns about the premium paid — approximately 15% above ARC’s share price before the bid was announced — but argue that the strategic fit justifies the cost. “Shell is betting big on LNG as a bridge fuel, and ARC’s low-cost reserves are a natural fit for its export ambitions,” said an energy analyst at Bernstein.
For UK investors, the takeover reinforces the trend of consolidation in the global energy sector, as major oil and gas companies seek to secure long-term supply chains. Shell’s dividend, currently yielding around 3.8%, remains a key attraction for income-focused portfolios, though the company has warned that returns may be tempered by the increased capital spending required for the ARC integration.