REG - Competition and Mkts - Merger Update: GXO / Wincanton

GXO LogisticsAnnouncement

19/06/2025 14:00

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RNS Number : 5718N  Competition and Markets Authority  19 June 2025

Logistics deal cleared with remedies to help keep supermarket warehousing costs low

CMA has cleared GXO's acquisition of Wincanton following the business's offer to sell Wincanton's dedicated grocery warehousing business.

 

The Competition and Markets Authority (CMA) has cleared the merger between
contract logistics services providers, GXO and Wincanton - subject to the sale
of Wincanton's dedicated grocery warehousing business to a CMA-approved buyer.

In its final report
(https://www.gov.uk/cma-cases/gxo-slash-wincanton-merger-inquiry) , the
independent inquiry group leading the CMA's investigation found that GXO's
purchase of Wincanton would reduce competition in the supply of dedicated
warehousing services to grocery customers in the UK.

The loss of competition would likely lead to higher costs for grocers which,
in turn, could be passed onto shoppers across the UK and lead to more
expensive products at the checkout. The loss of competition resulting from the
deal could hamper innovation and reduce service levels in the market -
impacting the efficiency of goods reaching supermarket shelves.

As a result, GXO has agreed to sell Wincanton's dedicated grocery warehousing
business to a CMA-approved buyer. The inquiry group is satisfied that this
remedy sufficiently addresses its competition concerns and is therefore
clearing the deal.

Logistics, including warehousing, is essential to the operation of
supermarkets and many other businesses in the UK. Efficient logistics systems
help to lower costs for both businesses and consumers and ensure that products
are available in stores when needed.

Richard Feasey, Chair of the independent inquiry group, said:

"Warehousing services play a crucial role in ensuring the seamless movement of
goods across the UK, allowing our supermarkets to maintain well-stocked
shelves with thousands of items we buy every day.

"Healthy competition in this market is key to managing costs for supermarkets
and grocers and improving their performance - ultimately ensuring consumers
pay the best possible prices for products in stores. We are pleased to approve
this deal, having worked with GXO and Wincanton to secure the necessary
changes to the deal which resolve our concerns."

For more information, visit the GXO / Wincanton
(https://www.gov.uk/cma-cases/gxo-slash-wincanton-merger-inquiry) case page.

Notes to Editors:

1.   Alongside publishing the final report, the CMA has also issued an
interim order to permit GXO and Wincanton to begin integration once
Wincanton's dedicated grocery warehousing business has been appropriately
ringfenced, pending its sale to a suitable CMA-approved buyer.

2.   The independent inquiry group's final report will be published on the
GXO / Wincanton
(https://www.gov.uk/cma-cases/gxo-slash-wincanton-merger-inquiry) case page in
due course.

3.   Contract logistics services (CLS) encompass a range of B2B and B2C
supply chain-related services, which enable businesses to supply goods to
customers and consumers. These services include transport and distribution,
warehousing and additional value-added services.

4.   All media enquiries should be directed to the CMA press office by email
on press@cma.gov.uk (mailto:press@cma.gov.uk) or by phone on 020 3738 6460.

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