Integrated petroleum company Royal Dutch Shell plc. (RDSA), Monday morning announced that its wholly-owned subsidiary Shell Canada Limited has agreed to acquire all the outstanding shares of Duvernay Oil Corp. (DDV.TO) at C$83 per share in cash, valuing Duvernay Oil at about C$5.9 billion, including debt. Following the announcement, Duvernay Oil stock on the Toronto Stock Exchange is surging over 40%.
Board of directors of both the companies have unanimously approved the proposed transaction, while the Duvernay board has recommended the offer to its shareholders. As per the deal, Shell Canada would make a tender offer to Duvernay stockholders.
Shell Canada is one of the largest integrated petroleum companies in Canada with three major business units: Exploration and Production, Oil Sands and Oil Products, supported by a number of corporate departments. It is engaged in producing natural gas, natural gas liquids and bitumen. It is also the country's largest producer of sulphur. Further, Shell Canada is a leading manufacturer, distributor and marketer of refined petroleum products.
The Calgary, Alberta-based Duvernay is an oil and natural gas company. It is engaged in the exploration for, and the acquisition, development and production of, natural gas and crude oil, with emphasis on the deeper, western portion of the Western Canadian Sedimentary Basin in Alberta and northeastern British Columbia. Duvernay is also a leading acreage holder in the Western Canadian Sedimentary Basin with about 450 thousand acres of landholdings.
Duvernay's management has chosen a conventional, drilling based exploration and production growth plan to build the company and add value for the shareholders. It also maintains a limited geographic focus, allowing it to operate more efficiently with more modest engineering and operations staffing levels, and to better control costs in all aspects of its business.
Commenting on the proposed acquisition, Shell's Chief Executive, Jeroen van der Veer said, "Duvernay could become a valuable part of the Shell portfolio, where we can add value through technology and scale. The combination of Duvernay's acreage with Shell's proven operating experience and financing capabilities make this transaction attractive to all shareholders."
The offer price of C$83 per share represents a 42% premium over Friday's closing price of $58.44 and a 36% premium over the average share price over the last 30 days.
The proposed acquisition is subject to certain customary conditions and regulatory approvals. It also requires the acceptance of at least two-thirds of the outstanding common shareholders of Duvernay, calculated on a fully diluted basis.
Duvernay noted that officers and directors holding about 18.1% of the issued and outstanding shares of Duvernay have entered into lock-up agreements with Shell Canada and have agreed to tender their shares, subject to certain exceptions.
In the event that under certain circumstances the proposed transaction is not completed, Duvernay has agreed to pay Shell Canada a non-completion fee of C$120 million. The companies have also agreed to customary non-solicitation covenants. Duvernay also noted that full details of the formal acquisition offer would be mailed to its shareholders shortly.
In Monday's regular trading session, RDS-A is trading at $76.45, down $1.11 or 1.43% on a volume of 0.46 million shares, while on the Toronto Stock Exchange, DDV.TO is trading at C$82.06, up C$23.62 or 40.42% on a volume of 5.63 million shares.
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June 05, 2026 16:18 ET A busy week for economic news flow saw a slew of reports being released that reflected the trends in the U.S. labor market. In Europe, economic growth and inflation data gained attention as the European Central Bank and Bank of England head for policy session later in the month. In Asia, the monetary policy session of the Indian central bank was in focus as the country, a major oil importer, reels under the pressures of a weaker rupee and rising inflation.