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

Shareholders in DCC Energy have given their approval to a £5.7 billion takeover by private equity firms KKR and Energy Capital Partners (ECP), paving the way for the completion of one of the UK's most protracted private equity-led M&A processes of the year, according to a Bloomberg report. The transaction garnered backing from 78.1% of shareholders voting at a special meeting on Friday, as reported by DCC.

The deal is expected to be finalized during the first quarter of 2027, contingent upon fulfilling the remaining conditions of the agreement. DCC's chairman, Mark Breuer, expressed that the transaction would enable shareholders to capitalize on their investment. The Dublin-based firm distributes fuel and gas across Europe and the United States.

Its acquisition by KKR and ECP will result in the removal of one of the last Irish-founded companies listed on the UK's FTSE 100 from the public market. The takeover follows a prolonged bidding process between DCC and the private equity consortium, with bid deadlines extended four times within a month before the parties reached an agreement.

In June, DCC had signaled its readiness to accept a takeover proposal, although some of its largest shareholders subsequently expressed reservations about the price offered by KKR and ECP. Notably, institutional investors such as Aviva and Fidelity International also raised concerns regarding the proposed valuation. Nevertheless, the shareholder approval provides KKR and ECP with a clear path towards finalizing the acquisition and taking DCC private.

In recent years, DCC has been realigning its portfolio around energy. In 2022, the group announced plans to focus on its energy operations and aimed for a doubling of operating profit to £830 million by 2030.