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Irish energy distributor DCC Energy has agreed to be acquired by a consortium led by U.S.-based private equity firms KKR and Energy Capital Partners in a deal valued at approximately USD 7.68 billion. The transaction reflects growing foreign interest in UK-listed companies amid relatively low market valuations. The offer includes a cash payment, a proposed final dividend and a potential additional payout linked to the sale of DCC's technology business. The company said the deal follows efforts to simplify its operations and sharpen its focus on its core energy business across Europe.
Irish energy distributor DCC Energy has agreed to be acquired by a consortium comprising U.S.-based private equity firms KKR and Energy Capital Partners in a deal valued at GBP 5.75 billion (USD 7.68 billion). The acquisition adds to the growing number of foreign takeovers of UK-listed companies seen this year, as overseas investors continue to target businesses trading at comparatively lower valuations.
Under the agreed terms, DCC shareholders will receive GBP 65.25 per share in cash along with a proposed final dividend of 147.22 pence per share. They may also receive an additional payment of up to GBP 1.25 per share if DCC completes the sale of its Nexora technology business for at least USD 800 million.
The agreement follows multiple proposals from the consortium. The final offer represents a premium of more than 26% over DCC's closing share price on the trading day before the consortium's initial approach became public. Reports had indicated that some investors were dissatisfied with the earlier valuation offered for the company.
Commenting on the transaction, DCC Chief Executive Officer Donal Murphy said the company had spent considerable time simplifying the group and strengthening engagement with investors, but those efforts had not translated into the valuation that private capital was prepared to place on the business.
Murphy also said one shareholder that had opposed the deal had subsequently reduced a significant portion of its holding at a price below the consortium's current offer. Based on this, the board believes shareholders are likely to support the proposed acquisition.
Following the announcement, DCC's shares rose 1.3% in early trading to GBP 63.65 per share.
Over the past few years, DCC has reshaped its business by focusing on its core energy operations. The company has expanded its presence in Europe's liquid gas market through acquisitions while divesting non-core businesses, including its healthcare and technology divisions. The planned sale of the Nexora technology unit is part of this broader portfolio restructuring.
The transaction also reflects a wider trend of increasing private equity activity in the UK market. Companies listed in the UK have continued to attract overseas buyers as valuations remain relatively subdued compared to other major markets. Market data from LSEG showed that cross-border mergers and acquisitions involving UK companies have exceeded USD 197 billion so far this year, marking the highest year-to-date total since records began in 1980. U.S.-based buyers have accounted for more than half of these foreign acquisitions.
The proposed acquisition follows several other high-profile private equity transactions involving UK-listed companies. Budget airline EasyJet is in discussions with private equity firms regarding a potential sale, while testing and certification company Intertek agreed to be taken private by EQT in recent months, highlighting continued investor interest in the UK corporate sector.
Source Reuters
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