KKR Makes $9 Billion Takeover Offer for UGI Corp
Private equity firm KKR & Co. Inc. (NYSE: KKR) has made a roughly $9 billion takeover offer for natural-gas and electricity distributor UGI Corporation, valuing the company at $42.50 per share—a 21% premium to its recent closing price of $35.09. The move comes amid growing interest in energy utilities due to rising demand from AI data centers, which has turned previously undervalued firms into attractive acquisition targets. UGI's business includes gas and electric utilities, propane distribution through AmeriGas, pipeline systems, and European natural-gas sales—offering KKR a broad international footprint. However, the deal is unconfirmed with no signed agreement yet, leaving investors exposed to risks if it falls apart or another bidder emerges. The offer represents significant upside for UGI shareholders given its underperformance compared to broader markets like the S&P 500 over the past year.
