News
April 2025 decision date set for probe into £762m GXO deal for Wincanton
Findings of a Phase 1 probe into the deal were published on 1 November 2024, with the CMA concluding that the transaction could result in the substantial lessening of competition within the mainstream contract logistics services market.
The two parties were given five days to respond, but that time has now elapsed. As a result, the deal has been officially referred for an in-depth Phase 2 investigation.
GXO is the world’s largest contract logistics services company and completed the acquisition of British logistics firm Wincanton in April, in a deal worth £762m.
Both companies operate within the fields of grocery retail and food manufacturing.
New guidance on Phase 2 investigations was published by the CMA earlier this year, with the process led by an inquiry group that is made up of an independent panel of experts.
Following the conclusion of this stage, the CMA will issue its final ruling on the acquisition. The body has the power to block a merger if it concludes that it will result in a lessening of competition, although this can be appealed.
CMA concerned costs could be passed on
Commenting on the process so far, senior director of mergers at the CMA, Naomi Burgoyne, said: “[The contract logistics services] market is worth £16 billion in the UK, and we’re concerned that this merger could reduce competition, resulting in higher costs being passed down to consumers.
“Contract logistics services are critical for the flow of goods around the country, reducing delays, and ensuring that products reach their destinations efficiently and reliably. These services are essential for millions of people who rely on timely deliveries or being able to buy products off the shelf.”
However, according to a spokesperson for GXO, the firm remains confident that the deal will receive regulatory clearance.
“We strongly believe that the transaction will deliver meaningful benefits for contract logistics customers in the UK, Europe and globally, and will support the UK Government’s objective to drive economic growth by creating a more efficient and effective supply chain,” the spokesperson added.
In other news, Samworth Brothers has been fined £1.28m after an employee was killed in the loading bay of a facility operated by the food manufacturer.
