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UK watchdog finds competitors issues in GXO Logistics-Wincanton deal

Britain's competitors guard dog said on Friday the acquisition of Wincanton by U.S.based warehousing firm GXO Logistics, for 762 million pounds ($ 983.97. million), could minimize competitors and raise costs for. clients.

The Competition and Markets Authority said GXO and Wincanton. contend closely, particularly for agreements with large retail. clients, and the regulator was worried the merger could. minimize competition, resulting in higher costs being passed down. to consumers.

The offer was completed in April - the CMA had actually launched its. investigation in early September.

We are examining the decision and will continue to engage. constructively and collaboratively with the CMA to secure a. favorable result, GXO informed Reuters.

Earlier this year, GXO outbid CEVA Logistics with a 605. cent per share deal for Wincanton, a company that operates in. about 160 places in the UK and Ireland and is associated with. e-commerce, groceries and non-food retail.

Consumers of Wincanton include significant supermarket operators. such as Sainsbury's, Morrisons and Asda.

GXO has five working days to submit proposals to attend to. CMA's issues.?

(source: Reuters)