KKR to buy ContourGlobal in £1.75bn deal

Under the terms of the acquisition, KKR will pay 263.6p per share in cash, which is a premium of 36% to the closing share price on Monday.

KKR said the company’s existing business provides a compelling platform for significant future organic and inorganic value-accretive growth, driven by the changing nature of the energy industry as a result of decarbonisation targets.

"The energy transition is driving substantial changes in the underlying energy markets and, as such, will require sustained capital investment and business agility," it said. "KKR believes it can support ContourGlobal in its ESG-positive strategy which aims at a meaningful 40% reduction of CO2 emissions intensity by 2030, and to be net zero carbon by 2050."

Craig A. Huff, chairman of the board of ContourGlobal, said the offer provides an opportunity for all shareholders to crystallise their investment "at an attractive price".

"The board of ContourGlobal welcomes KKR's intention to provide capital and operational expertise to support ContourGlobal's strategy, including accelerating investments in the energy transition," he said.