Global energy major Shell plc has temporary halted its US$3 billion (AU$4.5 billion) share buyback programme, shifting focus to regulatory requirements ahead of its planned multi-billion-dollar acquisition of Canadian firm ARC Resources Ltd.
Shell has halted its share buyback scheme, which commenced on May 7, until the close of market on July 14.
According to the company, the decision follows the publication of ARC Resources’ shareholder circular.
Due to strict securities law requirements linked to the upcoming transaction, Shell is legally mandated to freeze the three-month buyback programme during this period.
Shell stated that any buybacks left uncompleted during the month-long suspension will be rolled into its remaining 2026 programmes, subject to board approval.
The temporary halt comes as the Calgary-based ARC Resources formalises plans for its investors to vote on Shell’s takeover bid.
ARC said that a shareholder meeting has been scheduled for July 14 to vote on the deal, which was initially unveiled in late April. The ARC board has unanimously recommended that shareholders vote in favour of the transaction.
Under the terms of the agreed proposal, ARC shareholders will receive 0.40247 of a Shell ordinary share plus CAD$8.20 in cash for each ARC share held, valuing the target company at CAD$32.80 per share.
The deal represents an enterprise value of approximately US$16.4 billion (AU$24.6 billion).
If the acquisition receives the green light from investors, the takeover is expected to become effective in the second half of 2026.
