UK watchdog finds competition concerns in GXO Logistics-Wincanton deal (updated)

GXO Logistics

01/11/2024 12:25

(Adds GXO's comments in paragraph 4, details throughout)
    By Yadarisa Shabong
       Nov 1 (Reuters) - Britain's competition watchdog said on
Friday the acquisition of Wincanton by U.S.-based warehousing
firm GXO Logistics  GXO.N , for 762 million pounds ($983.97
million), could reduce competition and raise prices for
customers.
    The Competition and Markets Authority said GXO and Wincanton
compete closely, particularly for contracts with large retail
customers, and the regulator was concerned the merger could
reduce competition, resulting in higher costs being passed down
to consumers. 
    The deal was completed in April - the CMA had launched its
investigation in early September.
    "We are reviewing the decision and will continue to engage
constructively and collaboratively with the CMA to secure a
positive outcome," GXO told Reuters.
    Earlier this year, GXO outbid CEVA Logistics with a 605
pence per share offer for Wincanton, a company that operates in
about 160 locations in the UK and Ireland and is involved in
e-commerce, groceries and non-food retail.
    Customers of Wincanton include major supermarket operators
such as Sainsbury's, Morrisons and Asda. 
    GXO has five working days to submit proposals to address
CMA's concerns.​

($1 = 0.7744 pounds)

 (Reporting by DhanushVignesh Babu and Yadarisa Shabong in
Bengaluru; Editing by Krishna Chandra Eluri)
 ((DhanushVignesh.Babu@thomsonreuters.com;))