KKR AND ENERGY CAPITAL PARTNERS AGREE £5.75BN TAKEOVER OF DCC

KKR and Energy Capital Partners have agreed to acquire DCC Energy, one of the FTSE 100's largest energy firms, for £5.75bn. The US private equity consortium will pay £65 per share in cash, plus a final dividend of 147 pence per share, according to an announcement this morning. DCC's board recommended the offer, though the deal has drawn opposition from the company's founder and major shareholders including pension firms Aviva and Fidelity International.

The takeover represents a 24 per cent premium to DCC's undisturbed share price before the offer period began, though one report stated the offer was 36 per cent higher than the company's average share price over the three-month period before takeover talks became public. Jim Flavin, DCC's founder and a top shareholder, said he was "astounded" by the board's decision and regards the price as "totally inadequate". Aviva Investors' head of UK active equities, Matt Bennison, stated the takeover would "represent a bad outcome for shareholders" and Aviva would not support the deal. The board believes the offer allows shareholders to "crystallise value in cash at an attractive premium" despite the company's 2022 strategy setting an aim to double operating profits to £830m by 2030.

The acquisition forms part of a significant exodus of companies from the London Stock Exchange this year. Dealmaking on the LSE could reach £70bn in 2026 if all currently progressing offers complete, according to analysis by AJ Bell, making it the highest-value year for takeovers since the pandemic. The deal must still gain approval from DCC shareholders, with a vote scheduled for September. Other major takeovers involving London-listed firms this year include Mitie's £3.1bn acquisition and Segro's potential £14bn sale to Prologis.