Wincanton ditches support for CEVA deal in favour of higher GXO bid (updated)
01/03/2024 07:43
(Adds details on offers, chairman statement)
March 1 (Reuters) - British logistics firm Wincanton
WIN.L withdrew its support for CEVA's proposed deal on Friday,
in favour of GXO Logistics' GXO.N higher offer, which valued
the company at about 762 million pounds ($962.3 million).
GXO had offered to buy Wincanton for 605 pence per share on
Thursday, compared with CEVA's "increased and final" bid of
about 480 pence apiece tabled on Monday.
GXO said its bid underscores its interest to expand into the
UK's aerospace, utilities, industrial and healthcare sectors,
with Wincanton able to give it a "springboard" to offer
industrial services across Europe.
Wincanton operates in the UK and Ireland and offers supply
chain solutions to businesses across sectors. It counts IKEA,
Primark and BAE Systems among its customers.
CEVA, a unit of French shipping firm CMA CGM, said on
Thursday that it would consider its options after GXO outbid it.
CEVA had first proposed to buy Wincanton for 450 pence a
share in January, before it raised its offer on Monday.
Including debt, GXO's offer valued Wincanton at about 960
million pounds.
"The Board of Wincanton is pleased that GXO recognises the
very significant value inherent in this business and intends to
recommend the offer to shareholders for their consideration,"
Wincanton Chairman Martin Read said in a statement.
($1 = 0.7918 pounds)
(Reporting by Yadarisa Shabong in Bengaluru; Editing by Varun H
K and Sonia Cheema)
((Yadarisa.Shabong@thomsonreuters.com; +91 9742735150;))