KKR and Energy Capital Partners (ECP) are pushing forward with their sweetened takeover bid for Irish services firm DCC, valued at £5.7 billion (€6.67 billion). The consortium's offer of £66.72 per share, which includes a dividend, comes ahead of a Wednesday deadline and represents a 24% premium to DCC's closing stock price on April 28, the day before news of the acquisition interest became public. This latest proposal is also 15% higher than their initial bid, which DCC's board had rejected as undervaluing the company.
DCC's board is reportedly close to finalizing the transaction, despite objections from two of its largest investors, Aviva Investors and Fidelity International, who argue that the offer remains too low. Representatives for DCC, KKR, and ECP have declined to comment, and while talks are ongoing, a delay remains possible. DCC, a provider of energy sales and distribution across Europe and the US, recently reported a €634 million operating profit for the fiscal year ended March 31. The potential sale would mark the departure of one of the last Irish companies from the FTSE 100 index.
This acquisition attempt aligns with DCC's strategic shift to focus solely on energy operations. The company has been divesting its non-energy divisions, including the sale of its healthcare unit for approximately £1.05 billion and plans to divest its technology operations by late 2026. This transformation positions DCC to potentially rebrand as DCC Energy plc. KKR has been an active player in UK deals, notably winning a bidding war for Spectris Plc last year with a £4.2 billion offer.
