The battle for logistics giant Wincanton has intensified as US-based GXO Logistics revealed a robust bid exceeding £760 million, signalling a challenge to the previously agreed offer from Ceva Logistics.
In a strategic move, GXO Logistics proposed a cash offer of 605p per share for Wincanton, catapulting shares of the Wiltshire-headquartered company by nearly 20%. The deal values Wincanton at £762 million, with debts included, presenting a compelling alternative to the £605 million bid from Ceva Logistics, a unit of French shipping expert CMA CGM.
The proposed acquisition by GXO Logistics is poised to reshape the logistics landscape, leveraging the strengths of both entities. GXO Logistics, known for its expertise in supply chain management through automation technology, aims to enhance its UK operations by integrating Wincanton’s extensive experience in managing supply chains for prominent brands like Ikea, Primark, Waitrose, and Wickes.
Addressing potential concerns regarding workforce impact, GXO Logistics anticipates minimal disruption, estimating around 300 jobs, or 0.2% of the combined workforce, may be affected by the streamlining of administrative functions. Moreover, GXO remains committed to long-term growth in the UK market, projecting an overall increase in headcount.
Malcolm Wilson, Chief Executive of GXO, underscored the conviction behind the superior offer, emphasising the value proposition and growth opportunities inherent in the combined entity. He highlighted the synergies expected to generate approximately £50 million in savings by the third year post-acquisition, further solidifying GXO’s commitment to driving operational efficiency and shareholder value.
The proposed takeover bid by GXO Logistics represents a pivotal moment in the logistics sector, setting the stage for a competitive landscape reshaped by strategic mergers and acquisitions. As both companies navigate regulatory scrutiny and stakeholder considerations, the outcome of this battle will have far-reaching implications for the future direction of the industry.
