DCC Energy, a Dublin-based FTSE 100 energy company, has agreed to a £5.75 billion takeover by US private equity firms KKR and Energy Capital Partners (ECP), marking another significant exit from the London Stock Exchange amid a wave of recent buyout deals. The board of DCC Energy has recommended that shareholders approve the deal, which offers £65.25 per share in cash plus a final dividend of 147.22p per share. Additionally, shareholders would receive an extra 125p per share if the company’s technology subsidiary, Nexora, is sold for a minimum of $800 million (£600 million).

The agreed price represents approximately a 36% premium on DCC’s average share price over the past twelve months and a roughly 4% premium on its most recent closing price. The deal follows an earlier rejected offer by the same consortium in April, which DCC had deemed to undervalue the company’s prospects.

DCC Energy's chairman, Mark Breuer, stated that the offer provides a compelling opportunity for shareholders to realize value in cash at an attractive premium to the company’s historical trading price, despite the board’s continued confidence in the company’s growth strategy. DCC, which began as a venture capital firm in 1976 and expanded into the energy sector in the 1980s, became a member of the FTSE 100 in 2015.

However, the takeover has drawn notable criticism from some of DCC’s major shareholders and its founder. Jim Flavin, the company’s retired founder and a significant shareholder, expressed strong opposition to the board’s recommendation, calling the offer price "totally inadequate" and questioning the decision to approve a dividend distribution concurrent with the deal announcement. Flavin highlighted the company’s updated strategy from 2022, which targets a doubling of operating profits to £830 million by 2030, as evidence that the bid undervalues the company’s future potential.

Pension funds and institutional investors such as Aviva and Fidelity International have also voiced misgivings, with Aviva's head of UK active equities, Matt Bennison, describing the offer as not in the best interests of shareholders and signaling that Aviva would likely oppose the deal if recommended by the board.

DCC Energy supplies liquid gas and fuels across Europe and the United States. Its divestment of technology business Nexora earlier this year is part of an ongoing restructuring. The proposed sale of Nexora could provide an additional cash dividend to shareholders if it meets the threshold price set by the offer.

This takeover is part of a broader trend in 2026 where numerous UK-listed companies have agreed to private equity buyouts, raising concerns about the declining depth and liquidity of the London Stock Exchange. The total value of takeover deals this year is approaching £70 billion, the highest level since the COVID-19 pandemic.

DCC shareholders are expected to vote on the proposed transaction in September, and the ultimate outcome will hinge on whether the wider shareholder base supports the board’s recommendation amid growing debate over the adequacy of the offer.