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Supply Chain

France's CMA CGM Unit Raises Offer For UK's Wincanton

By Reuters
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France's CMA CGM Unit Raises Offer For UK's Wincanton

CEVA Logistics, a unit of French shipping firm CMA CGM, raised its offer to buy Wincanton to about £604.7 million (€707.6 million), hoping to fend off a rival offer for the British logistics firm.

CEVA's offer of 480 pence-per-share in cash is 6.7% higher than its original offer of 450 pence-per-share on 19 January.

Wincanton's shares closed at 449 pence on Friday. They jumped as much as 12.5% to a record-high of 505 pence on Monday.

'Increased And Final' Offer

Wincanton said its board recommends CEVA's 'increased and final' offer but added that it was also approached by a potential competing bidder, which it later revealed to be US-based logistics firm GXO, owner of Clipper Logistics.

GXO has indicated that it is considering making a proposal for a cash offer. Wincanton has not received any formal proposal, it said in a statement, adding that it would carefully consider its terms if an offer were made.

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Acquiring Wincanton will help cash-rich CMA CGM, privately controlled by the Franco-Lebanese billionaire Saade family, to add a new layer of expertise on warehousing management and grocery and expand CEVA's offering in the UK.

Wincanton

Wincanton provides storage, handling and distribution services across markets from food and consumer goods to manufacturing, fuel and defence, operating from more than 170 sites across Britain and Ireland.

It counts supermarket chains like Morrisons, Sainsbury's and Asda as customers.

Last year, CMA CGM and Maersk said they would cooperate in efforts to reduce emissions in the sector, including by supporting the use of methanol and aiding research into potential fuels like ammonia.

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