Shell plc's C$22.9 billion (US$16.4 billion) takeover of ARC Resources Ltd has passed another milestone with the deal receiving the approval of the target company’s shareholders.
Shareholders of the Canadian natural gas producer voted overwhelmingly in favour of accepting the offer of C$12.25 in cash and 0.52 Shell ordinary shares for each ARC common share.
ARC said in a news release that the special resolution approving the ‘arrangement’ was approved by 99.54% of the votes cast by shareholders present online or represented by proxies at a special meeting on Tuesday.
The transaction was announced earlier this year and is expected to strengthen Shell's North American natural gas portfolio.
ARC has obtained three key regulatory approvals necessary to close the deal and continues to seek the others.
The next major step will be a hearing before the Court of King's Bench of Alberta scheduled for 15 July, when ARC will seek a final order approving the arrangement.
“Subject to the receipt of the Court approval, as well as certain other remaining regulatory approvals and the satisfaction of other customary closing conditions, the Arrangement is expected to close in the second half of 2026, and the ARC Shares are expected to subsequently be delisted from the Toronto Stock Exchange,” ARC said.
Shell announced the acquisition of ARC in April as part of its strategy to expand its integrated gas business in North America, where demand for liquefied natural gas is expected to continue growing.
ARC Resources (TSE: ARX) shares closed up 22 cents (0.70%) at C$31.66 on Tuesday, capitalising the company at C$17.94 billion.
Shell (LON: SHEL) shares closed up £49.16 (1.58%) at £3,158.16 on Tuesday, capitalising the company at £176.72 billion (US$236.8 billion).
