Royal Dutch Shell plc announced Monday its intention to acquire the minority interests in Shell Canada Ltd. for a cash price of C$40/share. Royal Dutch Shell owns a 78 percent stake in Shell Canada.
The proposal would value Shell Canada's fully diluted minority share capital at approximately C$7.7 billion. The Group owns a 78% stake in Shell Canada Limited.
The proposed acquisition follows the unification of Royal Dutch Shell in 2005 and is a further step in simplifying the company's structure.
Shell Canada has built a substantial position in Canada’s oil sands and is starting a major expansion of production and upgrade in capacity. With Shell Canada as part of Royal Dutch Shell, the company can share technologies and develop business on an international scale.
Royal Dutch Shell has requested that the Shell Canada Board name a special committee of independent directors to supervise a formal independent evaluation and make a recommendation about the proposed offer.