DCC Energy shareholders approve £5.7bn takeover by KKR and ECP

Shareholders in DCC Energy have approved a more than £5.7bn takeover by private equity firms KKR and Energy Capital Partners (ECP), clearing a key hurdle for one of the UK’s longest-running private equity-led M&A processes this year, according to a report by Bloomberg.

The transaction received support from 78.1% of shareholders voting at a special meeting on Friday, according to DCC. Completion is expected during the first quarter of 2027, subject to the remaining conditions of the deal.

DCC chairman Mark Breuer said the transaction would provide shareholders with an opportunity to realise value from their investment.

The Dublin-headquartered company distributes fuel and gas across Europe and the US. Its acquisition by KKR and ECP will take one of the remaining Irish-founded companies listed on the UK’s FTSE 100 out of public markets.

The transaction follows an extended bidding process between DCC and the private equity consortium, with bid deadlines extended four times in just over a month before the parties reached an agreement.

DCC said in June that it was prepared to accept a takeover proposal, although some of its largest shareholders subsequently raised concerns about the price offered by KKR and ECP. Aviva and Fidelity International were among institutional investors that expressed reservations over the proposed valuation.

The shareholder approval nevertheless gives KKR and ECP a clear path towards completing the acquisition and taking DCC private.

DCC has spent recent years reshaping its portfolio around energy. In 2022, the group announced plans to concentrate on its energy operations and targeted a doubling of operating profit to £830m by 2030.