Dublin-headquartered energy conglomerate DCC has formally accepted a £5.75bn takeover bid from a consortium of private equity firms, marking another significant departure from the London Stock Exchange. US private equity giant KKR, alongside Energy Capital Partners, a subsidiary of London-listed Bridgepoint, confirmed their offer to acquire DCC for £65 per share in cash, in addition to a final dividend of 147p per share.
The agreed deal represents a 24 per cent premium compared to DCC's share price before the offer period commenced. Despite the board's recommendation, the offer has faced considerable scrutiny, with several of DCC's top ten investors, including Aviva and Fidelity International, previously arguing that the bid substantially undervalued the company's long-term prospects. Jim Flavin, DCC's retired founder and a significant shareholder, expressed his astonishment at the board's decision, deeming the price 'totally inadequate'.
Mark Breuer, Chair of DCC Energy, stated that while the board remains confident in its energy strategy and 2030 Ambition, they believe the consortium's offer provides a compelling opportunity for shareholders to realise value in cash at an attractive premium. However, the deal will still need to be put to shareholders for approval in September, where further resistance could emerge.
This takeover is part of a broader trend seeing private buyers increasingly target London-listed companies, often citing attractive valuations. This year alone, the London Stock Exchange has seen 11 deals exceeding £1bn in value. Just last week, facilities management firm Mitie confirmed its exit from public markets after accepting a £3.1bn offer from private equity-backed rival OCS. Additionally, FTSE 100 real estate company Segro indicated its willingness to accept a £14bn offer from US property firm Prologis.
Should all currently progressing deals be completed, the total value of takeovers of listed firms this year could reach more than £69bn, according to analysis by AJ Bell. This would position 2026 as the year with the highest value of such acquisitions since the pandemic. Shares in DCC saw a modest rise of 1.1 per cent on Monday, closing at 6,355p.