Aviva Warns DCC Takeover Offer Undervalues Company

By the Editorial Team · Saturday, July 4, 2026

Aviva Investors has publicly opposed the £5.7 billion private equity bid for energy group DCC, arguing that the offer undervalues the company despite an increased cash proposal. This resistance, backed by other major shareholders like Fidelity, raises uncertainty over the takeover’s approval and highlights debates about the future of UK-listed assets amid growing acquisition activity.

Aviva Investors, one of the United Kingdom’s prominent asset managers, has publicly criticized a £5.7 billion private equity bid for the energy group DCC, warning that the offer undervalues the company. The warning adds to growing shareholder resistance to the takeover attempt.

The consortium behind the bid includes KKR and Energy Capital Partners, a subsidiary of Bridgepoint, a London-listed investment firm. They recently increased their initial cash offer from £58 to £65.25 per share, which also encompasses a previously proposed dividend of 147p per share. DCC’s board has indicated it is "minded to recommend" the acquisition to shareholders.

Dublin-based DCC operates across a diverse range of energy-related businesses, including fuel supply, forecourt operations, consulting, and marketing services. It is a constituent of the FTSE 100 index. Aviva Investors holds a 2.15 percent stake in DCC, making it the company’s seventh-largest shareholder.

Matt Bennison, head of UK equities at Aviva Investors, expressed disappointment at the offer level. He highlighted DCC’s strong and expanding business platform, high returns on capital, and attractive cash flow generation. Bennison emphasized that the company has multiple avenues for value creation, including organic and inorganic growth strategies, as well as returning cash to shareholders through dividends and share buybacks.

Aviva’s public stance follows opposition from Fidelity International, another significant shareholder. Alex Wright, a UK equity portfolio manager at Fidelity, managing funds with a combined 6.9 percent interest in DCC, stated he would not support any deal below £70 a share. Fidelity is the largest shareholder, holding nearly 8 percent of the company’s shares in total.

The takeover offer for DCC is part of a broader wave of acquisition bids targeting companies listed on the London Stock Exchange. Charles Hall, head of research at Peel Hunt, cautioned that the City of London may face risks of losing valuable domestic assets. He noted ongoing regulatory reforms aimed at enhancing the UK’s appeal as a listing venue, while also expressing concerns over UK investors’ perceived aversion to risk and underexposure to growth-focused assets.

As the situation develops, shareholder sentiment and DCC’s strategic outlook will be key factors in determining the outcome of the bid.

This article was reported by synthesizing coverage from multiple independent news outlets to present a balanced, unbiased account. Read about our editorial standards. Spotted an error? Let us know.