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 firms KKR and Energy Capital Partners.
- The offer represents a 24% premium to DCC's share price prior to the offer period.
- DCC's retired founder, Jim Flavin, criticized the deal as 'totally inadequate.'
- The deal is part of a broader trend of private equity firms targeting London-listed companies.
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. The deal values the company at approximately $7.7 billion, an increase from KKR's initial offer. Shareholders are set to receive £65.25 per share in cash, along with a potential additional payment contingent on the sale of DCC's technology arm, Nexora. This acquisition is one of the largest in Europe's energy sector this year, occurring amidst concerns about energy security that make companies like DCC attractive to private equity. While DCC's board has recommended the offer, citing it as a compelling opportunity for shareholders to realize value, DCC's founder Jim Flavin and major investors such as Aviva and Fidelity International have voiced strong opposition, deeming the offer inadequate. This transaction is part of a larger trend of private equity firms acquiring London-listed companies, with 11 such deals exceeding £1 billion already agreed upon this year. DCC shares saw a modest increase of 1.1% to £63.60 following the announcement.