Ireland's DCC rejects $6.66 billion takeover bid, shares fall

Thu, 30th Apr 2026 13:58

* DCC says 58 pounds per share bid undervalues company

* KKR and Energy ⁠Capital Partners decline to comment

* DCC is latest FTSE 100 group to attract bids

* Shares down 1.9% after falling as much as 6.4% (Adds KKR and Energy Capital Partners declining ‌to comment in paragraph 3, graphic on shares, analyst comment in 8, details on share performance in 9 and 12)

April 30 (Reuters) - Irish energy distributor DCC on ⁠Thursday rejected a 4.95-billion-pound ($6.66 billion) takeover proposal from a consortium comprising U.S. investment firms KKR and Energy Capital Partners, saying it undervalued the company. London-listed DCC's shares fell as much as 6.4% as it snubbed the cash proposal of 58 pounds per share, which represented a premium of ‌8% to DCC's closing price before the offer was made public on Wednesday.

KKR and Energy Capital Partners declined to comment. The consortium has until June 10 to make a firm offer or walk away.

The approach to Dublin-based DCC marks the latest private equity pursuit of a UK-listed company, with bidders attracted by firms' comparatively lower valuations. FTSE 100 companies to attract takeover offers in the past few months include Beazley, Schroders ‌and Intertek.

DCC, which distributes liquid gas, biofuels, and renewable energy to businesses and households, has been divesting non-core healthcare and technology assets to focus on its ‌energy business. In February, the group forecast robust profit growth for 2026.

VALUATION AND TIMING QUESTIONS

Berenberg analyst James Bayliss agreed the proposal undervalued DCC, calling the timing "heavily opportunistic", as DCC is still working through its simplification and has "yet to be rewarded" for it.

"I think for something to be amenable for shareholders and management, you'd need to see a significant uplift ‌from the rejected price today," he said.

DCC shares have risen about 22% in the past year, including sharp gains on Wednesday following disclosure of the bid, leading to the stock marginally outperforming the FTSE 100.

RBC Capital ⁠Markets analyst ⁠Andrew Brooke said investors have been frustrated by DCC's share price performance, ‌adding that the market has struggled to value its energy business.

"We think there is a good chance that a deal happens, but are not convinced it will be much more than 10% ahead of the current price," Brooke ‌said.

DCC shares fell to 55 pounds and 5 pence apiece, valuing the company at roughly 4.70 billion pounds. At 1245 GMT, the stock recouped some losses and was down 1.9%.