Shell PLC (NYSE:SHEL) shares are trading lower Monday after the company said it agreed to acquire ARC Resources Ltd., a Montney-focused producer in British Columbia and Alberta, in a cash-and-stock transaction.

The deal carries an equity value of about $13.6 billion and an enterprise value of roughly $16.4 billion, including $2.8 billion in net debt and leases.

Under the terms, ARC shareholders will receive 8.20 Canadian dollars in cash and 0.40247 Shell shares for each ARC share, implying a total value of 32.80 Canadian dollars per share. That represents a 20% premium to ARC’s 30-day volume-weighted average price.

Shell said it will fund the purchase with $3.4 billion in cash and $10.2 billion in shares, issuing about 228 million shares. Both boards have unanimously approved the deal, which is expected to close in the second half of 2026, subject to regulatory and shareholder approvals.

Shell reported