DCC Energy, one of the largest energy businesses listed on the London Stock Exchange, has agreed a controversial £5.75bn takeover by US private equity groups KKR and Energy Capital Partners. The deal adds to the growing trend of companies leaving the UK market, following recent takeovers of Mitie, Tate & Lyle, and Evoke, while easyJet faces a possible £5.7bn offer.
Details of the deal
The board of Dublin-based DCC recommended the offer of £65.25 per share in cash, plus a potential £1.25 per share sweetener contingent on the sale of its technology arm, Nexora, reaching a certain price. The cash offer represents a 36% premium over DCC’s average share price in the three months before takeover talks became public. DCC supplies liquid gas and fuels across Europe and the US.
Opposition from founder and shareholders
Founder Jim Flavin, one of DCC’s largest shareholders, called the price “totally inadequate” and said he was “astounded” by the board’s support. He noted that DCC’s 2022 strategy aimed to double operating profits to £830m by 2030. Major shareholders Aviva and Fidelity also oppose the deal. Matt Bennison, head of UK active equities at Aviva Investors, said the increased offer was “not enough” and would not be in clients’ interests. DCC shares rose less than 1% to £63.40.
Impact on the London Stock Exchange
The takeover underscores the exodus of companies from the LSE, with critics arguing that UK-listed firms are undervalued. DCC’s board defended the deal as a “compelling and certain opportunity” for shareholders to realize cash value immediately.
