Energy firm DCC to join exodus from Footsie after £5.7bn bid as takeover frenzy sweeps the City
Energy firm DCC is set to become the fourth FTSE 100 member to be snapped up by overseas predators this year as a fresh wave of takeover activity sweeps the City.The board of London-listed DCC said that it was ‘minded’ to back a £5.7billion offer from the private equity giant KKR and Energy Capital Partners, having rejected an earlier £5billion approach.That set it on the path to become the fourth UK blue-chip to fall into foreign hands this year – with wealth manager Schroders, Lloyd’s of London insurer Beazley and laboratory testing company Intertek also on the block.The bid for DCC came just hours after it emerged that Boots was in talks with Australian pharmacy group Sigma Healthcare over a possible £7.5billion sale that would scupper its return to the London stock market. Boots is also in talks with the Canadian branch of the Weston family behind Primark.The takeover activity – with Tate & Lyle, William Hill owner Evoke and Easyjet also being targeted – will fuel fears over the health of the stock market. Takeover target: The board of London-listed DCC said that it was ‘minded’ to back a £5.7bn offer from the private equity giant KKR and Energy Capital PartnersDan Coatsworth at AJ Bell said: ‘The relentless pace of takeover activity would suggest there is a lot of value on offer. 'While it’s great news for shareholders if they’re getting bought out at a big premium, it’s not great for the state of the London market if the pot isn’t being replenished.’The bid for DCC valued shares at £65.25 each, which was up from the rejected £58 offer. Its shares rose 1.8 per cent, or 110p, to 6110p.DIY INVESTING PLATFORMSAJ BellAJ BellEasy investing and ready-made portfoliosHargreaves LansdownHargreaves LansdownFree fund dealing and investment ideasinteractive investorinteractive investorFlat-fee investing from £4.99 per monthFreetradeFreetradeInvesting Isa now free on basic planTrading 212Trading 212Free share dealing and no account feeAffiliate links: If you take out a product This is Money may earn a commission. These deals are chosen by our editorial team, as we think they are worth highlighting. This does not affect our editorial independence.Compare the best investing account for you
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Energy firm DCC to join exodus from Footsie after £5.7bn bid as takeover frenzy sweeps the City
