Key facts
- FTSE 100 energy group DCC has agreed to a £5.75bn takeover by a consortium of private equity firms.
- The consortium includes US private equity firm KKR and Energy Capital Partners.
- Shareholders will receive £65 per share in cash plus a final dividend of 147p.
- The offer represents a 24% premium to DCC's share price prior to the offer period.
- DCC's founder, Jim Flavin, criticized the deal as "totally inadequate."
- This deal is one of 11 worth over £1bn on the London Stock Exchange in 2026.
FTSE 100 energy group DCC has agreed to a £5.75 billion takeover by a consortium of private equity firms, including KKR and Energy Capital Partners, a subsidiary of Bridgepoint. The deal, which offers shareholders £65 per share in cash plus a final dividend of 147p, represents a 24% premium to DCC's undisturbed share price before the offer period began.
The Dublin-headquartered firm's board recommended the offer, with DCC Energy Chair Mark Breuer stating it represents a "compelling opportunity for shareholders to crystallise value in cash at an attractive premium." However, the decision has faced pushback from some top investors, including Aviva and Fidelity International, who argue the bid undervalues the company's long-term prospects.
DCC's retired founder and a significant shareholder, Jim Flavin, expressed his astonishment at the board's recommendation, calling the offer price "totally inadequate" and questioning the inclusion of a dividend paid out the previous week in the announcement.
This takeover is part of a broader trend of private equity firms targeting London-listed companies. So far this year, 11 deals worth over £1bn have been agreed upon on the London Stock Exchange. Recent examples include Mitie accepting a £3.1bn offer from OCS and Segro considering a £14bn offer from Prologis. If all ongoing deals are completed, the total value could exceed £69bn, potentially making 2026 the highest-value year for takeovers of listed firms since the pandemic.
Shares in DCC rose by 1.1% to 6,355p on Monday following the announcement.