DCC, a major energy company listed on the London Stock Exchange, has accepted a takeover proposal from private equity consortium KKR and Energy Capital Partners valued at £5.7bn. The deal represents another departure of a significant UK-listed company from public markets, following similar transactions involving other major businesses.
The board of the Dublin-based energy services provider recommended the offer at £65.25 per share in cash, supplemented by an additional £1.25 per share contingent on the successful sale of the company’s Nexora technology division meeting certain financial thresholds. The cash component represents a 36% premium to the company’s average share price during the three-month period before takeover discussions became public.
However, the proposal has faced substantial opposition from significant shareholders and company leadership. Jim Flavin, DCC’s founder and a major stakeholder, expressed strong disapproval of the board’s recommendation, stating he was “astounded” by their decision. Flavin characterized the offer as inadequate given DCC’s strategic objectives outlined in 2022, which targeted doubling operating profits to £830m by 2030. Major institutional investors, including Aviva and Fidelity, have also signaled opposition, with Aviva’s leadership describing the takeover as “a bad outcome for shareholders.”
The transaction continues a trend of London-listed companies being acquired by private equity firms and delisted, with recent similar deals involving businesses such as Mitie, Tate & Lyle, and Evoke. Budget airline easyJet is reportedly considering a comparable offer. Following the announcement, DCC’s share price moved marginally upward, closing just under 1% higher at £63.40.
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