A group of U.S. investment firms headed by KKR together with Energy Capital Partners is reported to be in advanced talks to acquire Ireland's DCC, with a revised bid that places the company's value above £5 billion, Sky News said on Wednesday.
DCC turned down the initial proposal submitted in late April, which had offered shareholders £58 a share, or about £4.95 billion in aggregate. The company said at the time that the approach undervalued its operations.
The consortium's updated proposal is reported to equate to roughly £65 per share, representing a 12% increase over the previously rebuffed offer, according to Sky News.
Market response to the new approach was visible in DCC's share price on Wednesday, with the London-listed stock rising 2.8% to close at £61.75. Based on the prior trading day, the stock had advanced about 11.5% since the late-April proposal was made.
UK takeover regulations impose a firm timetable on the consortium. The group must either lodge a binding offer or formally withdraw by 5:00 pm GMT on Wednesday. The rules also state that if the consortium elects to walk away, it will be prevented from revisiting a bid for DCC for a six-month period.
Market context and immediate implications
The reports outline a standard takeover sequence in which an initial offer was rejected and a higher bid has been tabled to advance negotiations. The updated valuation and the approaching deadline are central to the near-term outcome that the parties must resolve under the applicable takeover timetable.
What is known and what remains open
- Consortium composition: led by KKR and Energy Capital Partners, according to Sky News.
- Previous offer: £58 per share, valuing DCC at £4.95 billion, rejected in late April on grounds it undervalued the business.
- New reported valuation: approximately £65 per share, a roughly 12% uplift from the earlier bid, valuing DCC at more than £5 billion.
- Regulatory deadline: a firm offer must be submitted or the bid withdrawn by 5:00 pm GMT on Wednesday; withdrawal would bar renewed approaches for six months.