The acquisition could make Shell the biggest liquefied natural gas operator in the country. The cash-and-stock purchase price is adjusted for US$2.8 billion in net debt that Shell will take on in the merger, which it hopes to close in the second half of the year if it gets regulatory and shareholder approval. (The Logic)

Talking point: ARC’s shares rose more than 20 per cent on news of the takeover offer, which was a 27 per cent premium to ARC’s Friday share price. London-based Shell said it wants to make Canada its “low-cost heartland,” since it already has existing assets nearby in British Columbia and Alberta. Shell is betting that ARC’s expertise in liquid operations will help buttress its expertise in gas production, and that shipping directly from Canada will be cheaper and faster than its current base in the U.S. Gulf Coast. Ongoing battles over the Strait of Hormuz oil corridor in the Middle East have upped pressure for Canada and other countries to establish energy sovereignty, as the federal government makes a renewed push to support domestic LNG production.