GXO Outbids CEVA Logistics In Battle For UK's Wincanton

By Reuters
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GXO Outbids CEVA Logistics In Battle For UK's Wincanton

US-based warehousing firm GXO Logistics has offered to buy UK peer Wincanton for about £762 million (€889.9 million), topping an offer by CEVA Logistics.

The offer of 605 pence per share is about 26% higher than CEVA's offer of 480p.

Wincanton's shares jumped as much as 19.6% to a record high of 609 pence, indicating that investors may be hoping for a higher bid.

Wincanton, which had recommended CEVA's 'increased and final' offer on Monday (26 February), declined to comment on the GXO offer. On Monday, it had said it would 'carefully consider' any proposal from GXO.

CEVA, a unit of French shipping firm CMA CGM, said that it would consider its options after GXO topped its offer.


GXO Logistics

GXO's 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, GXO said.

GXO operates in almost 30 countries from about 970 warehouse locations and has a large exposure to the aerospace and defence sectors in the US.

This is not the first time that GXO has set its sights on Britain. Two years ago, it bought Clipper Logistics for around $1.3 billion (€1.2 billion).


Wincanton operates from about 160 locations and beyond its industrial clients is involved in e-commerce, groceries and non-food retail with customers including supermarket operators Sainsbury's, Morrisons and Asda.


GXO said its offer had the binding support of Wincanton's shareholders that hold about 34% of the company.

That support will no longer be binding if Wincanton draws a competing offer of more than 695 pence.

Malcolm Wilson, chief executive officer of GXO, stated, “Wincanton is a world class business, and we have long been impressed by their high-quality people and diverse customer relationships across key industries.

”The combination of GXO’s technological capabilities and global reach with Wincanton’s proven expertise in the UK and Ireland markets will enhance our offering for the benefit of both companies’ current and future customers.”


In January of this year, CEVA Logistics, a unit of French shipping group CMA CGM, said that it plans to buy British logistics firm Wincanton in an all-cash deal worth nearly £600 million (€699 million).

News by Reuters, additional reporting by ESM.

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