ARC Resources merges with Seven Generations in an $8 billion strategic combination
Published April 30, 2021
We advised ARC Resources Ltd. in its $8.1 billion strategic combination with Seven Generations Energy. This high-profile transaction helped both parties achieve size, scale, and ESG goals––and preserve their strong financial position.
This was a merger of equals, not an acquisition, which was one of the transaction’s complexities. That meant there had to be an equal number of directors from each board. ARC’s CEO chose the management team, but consulted with Seven Generation's board.
It was important to reduce the risk and potential friction of a long, back-and-forth negotiation. We established a foundation with an agreement negotiated between the two parties and went from there. It sped up the process, made it easier, and allowed ARC and Seven Generations to focus on key business and social issues.
BD&P has worked with ARC since its initial formation in 1996, giving us invaluable insight into their needs and goals. Our close-knit team brought their deep experience in the energy sector and with M&A transactions to create successful results for our client.
This $8.1-billion transaction resulted in ARC becoming Canada’s largest condensate producer, as well as:
- the third-largest natural gas producer
- the sixth-largest upstream energy company
- the premier Montney producer of low-cost natural gas and high-margin condensate