Shell strengthens its growth in Canada through the acquisition of Arc.

Mark Wilson of Jefferies stated that Shell's plan to acquire Arc Resources may help enhance its growth position and provide feedstock for Shell's Canadian liquefied natural gas facilities. The analyst believes that the $16.4 billion acquisition, including debt and leases, seems reasonable. Arc shareholders will receive 8.20 Canadian dollars in cash and 0.40247 shares of Shell stock for each of their shares. Wilson noted that the deal will immediately add 370,000 barrels of oil equivalent per day to Shell's production and is expected to generate $250 million in synergies within a year of completion. Jefferies has set a target price of 44 for Shell stock, which is currently down 0.4% at 32.93.