DCC gets clearance to complete Butagaz acqusition

Energy-to-technologies conglomerate DCC has obtained all the relevant regulatory clearances necessary to complete the acquisition of the French liquefied petroleum gas (LPG) business Butagaz from Shell.

Details of the €464 million deal - the biggest acquisition in the group’s history - were announced in May. The transaction will increase DCC’s LPG business from about 700,000 tonnes to 1.2 million tonnes.

The London-listed, Irish-headquartered company said the deal is now expected to complete in November following the separation of the Butagaz IT infrastructure from Shell’s.

Butagaz has a market share of 25pc in France. The company was founded in 1931, is headquartered in Paris and employs about 550 employees across France. The company sells to domestic, commercial, agricultural and industrial customers.

In the financial year ended December 31st,2 014, Butagaz generated underlying ebitda (earnings before interest, taxes, depreciation, and amortisation) of €123.6 million. Its gross assets totalled €677.5 million.

DCC shares jumped almost 13 per cent after the deal was announced in May and were up 2.1 per cent in early trading in London on Wednesday.