One of the London Stock Exchange’s largest energy companies has accepted a takeover proposal valued at £5.75 billion from US private equity firms KKR and Energy Capital Partners. The all-cash offer amounts to £65.25 per share, with an additional £1.25 per share contingent on the successful sale of DCC’s technology division, Nexora, reaching certain valuation targets. The company’s board has endorsed the acquisition despite reservations from significant stakeholders.
The transaction represents another major corporate departure from the UK market, joining a series of high-profile privatizations including Mitie, Tate & Lyle, Evoke, and the budget airline easyJet, which faces a comparable £5.7 billion offer. Dublin-based DCC supplies liquid gas and fuel products across Europe and the United States, making it one of the FTSE 100’s most prominent energy businesses.
The proposed acquisition has drawn substantial opposition from key investors. Founder Jim Flavin, who maintains significant shareholdings in the company, expressed strong disapproval of the board’s recommendation, characterizing the offer as undervaluing the business. He cited the company’s 2022 strategic shift, which established an objective to double operating profits to £830 million by 2030, arguing the current bid fails to reflect this growth trajectory. Matt Bennison, head of UK active equities at Aviva Investors, stated that the takeover would produce unfavorable outcomes for shareholders and confirmed Aviva’s intention to vote against the proposal.
The offer represents a 36 percent premium to DCC’s average stock price over the three months prior to public disclosure of the takeover discussions. However, market reaction remained subdued, with shares rising marginally to £63.40, reflecting investor skepticism about the valuation. The board characterized the offer as providing “a compelling and certain opportunity” for shareholders to receive immediate cash returns, though the pricing has failed to overcome objections from major institutional investors and the company’s founder.
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