ARC Resources on Tuesday reported that its shareholders voted decisively to approve the company's acquisition by Shell in a transaction valued at $16.4 billion. Company filings show that 99.54% of votes cast at a special shareholder meeting were in favor of the deal, clearing a crucial corporate governance step for one of the year’s largest energy sector transactions.
The companies said that several regulatory clearances have already been secured, including competition approvals in both Canada and the United States. Those clearances remove a number of regulatory impediments, leaving a scheduled hearing at the Court of King’s Bench of Alberta as the next formal step toward consummation. That court hearing is scheduled for Wednesday.
Shell earlier this year agreed to buy the Canadian natural gas producer as part of a strategic push to broaden its natural gas holdings in North America. In the period leading up to the shareholder meeting, Shell temporarily paused a $3 billion share buyback program to comply with securities law requirements related to the acquisition. The pause was instituted until the shareholder vote was completed.
The Alberta Securities Commission has provided Shell with relief from certain requirements connected to its share repurchase programs in the United Kingdom and the Netherlands. That regulatory relief satisfied an additional condition the parties had identified as necessary for the deal to move forward.
Company statements indicate that the transaction is expected to close in the second half of 2026. Once the acquisition is complete, ARC’s common shares are expected to be removed from listing on the Toronto Stock Exchange.
Context and next steps
- Shareholder approval represents a near-unanimous endorsement of the deal, with 99.54% of votes cast in favor.
- Competition clearances in Canada and the United States have been obtained, reducing regulatory uncertainty tied to antitrust reviews.
- The transaction remains contingent on a court approval hearing at the Court of King’s Bench of Alberta, scheduled for Wednesday, and standard closing conditions ahead of the expected second-half 2026 close.
The development will be closely watched across energy markets and capital markets given the size of the transaction and its implications for Shell’s natural gas footprint in North America.