MONEY
Private Equity Just Swallowed Another London Energy Firm
KKR and Bridgepoint's £5.75bn buyout of DCC Energy marks the fifth FTSE 100 takeover this year. Westminster is snoozing.
The GuardianDublin-based DCC Energy has agreed to a £5.75bn takeover by private equity groups KKR and Energy Capital Partners, pushing the total number of FTSE 100 company buyouts this year to five by July. Despite vocal opposition from major shareholders like Fidelity International and Aviva Investors, the board folded for cash today over a longer-term green energy transition strategy.
- The buyout values DCC Energy at £5.75bn, or £65.25 per share, giving a 24% premium on the pre-action share price.
- DCC was executing an eight-year strategy launched in 2022 to double operating profits to £830m by 2030 through petrol stations, liquid gas, and solar panel installation.
- Dissident shareholders including Fidelity International argued the company was worth at least £70 a share based on its returns and growth potential.
- Management blamed the sale partly on a shrinking, concentrated shareholder register and a lack of market participants engaging with the company's long-term story.
WHY THIS MATTERSWHY THIS MATTERS: When public companies keep getting snapped up by private equity, everyday retail and pension investors lose access to stable, transitioning energy assets. It proves that short-term cash payouts always beat long-term green infrastructure strategies in the current market.