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DCC Energy bid underscores active private equity dealmaking in FTSE 100

DCC Energy agreed to be taken over for £5.75bn, or £65.25 per share, as the number of completed or agreed FTSE 100 takeovers reached five by July.

Reported · Written up by our desk · M&A & Deals

DCC Energy has agreed to a takeover bid, highlighting how private equity is continuing to find targets in London’s FTSE 100. The deal values DCC Energy at £5.75bn, equivalent to £65.25 per share, and lifts the tally of completed or agreed takeovers in the FTSE 100 to five, with the year still only at July. The Guardian Business reports that DCC is described as a lower profile FTSE 100 member, yet the transaction still attracts scrutiny. The reported pushback from some shareholders centered on whether KKR and Energy Capital Partners, a unit of Bridgepoint, should pay more than the offer price. According to The Guardian Business, Fidelity International and Aviva Investors were among the prominent voices against the price, along with DCC’s founder. The outlet also links the debate to the company’s performance plans, noting DCC’s eight year strategy adopted in 2022 to double operating profits to £830m by 2030. The same reporting says about 35% of that operating profit growth has already been achieved, and the board says it remains confident in the 2030 ambition. The outlet also cites that Fidelity’s Alex Wright said he would not accept less than £70 per share, while pointing to the premium on the pre deal share price and other factors shareholders view as undervaluation.

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