US logistics firm GXO tables £760m bid for Wincanton as takeover battle heats up

29 February 2024 , 10:45

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A rival US suitor has tabled an offer worth more than £760 million for Wincanton (Image: No credit)

The battle for transport and logistics giant Wincanton has heated up as a new bidder tabling an offer worth over £760 million.

GXO Logistics, a US-based company with a global team of 130,000, has made a cash offer of 605p per share for Wincanton, which is based in Wiltshire. Wincanton's shares increased by nearly 20%.

Valuing Wincanton at £762 million or £764 million with debts, GXO's unexpected offer interrupts an already agreed bid by Ceva Logistics, a division of French shipping expert CMA CGM, that placed Wincanton's value at £605 million. Known for using advanced technology to manage supply chains for its customers, GXO hopes to combine forces with Wincanton which works to manage supply chains for renowned brands such as Ikea, Primark, Waitrose, Wickes, and employs over 20,000 people.

Should GXO's "superior" bid succeed, minor impacts on support staff are expected as plans to restructure administration-related roles. However, GXO insists this will only affect about 0.2% of the combined workforce or approximately 300 jobs, whilst expecting an overall increase in headcount in the long run to boost UK operations.

It also predicts savings of around £50 million from "synergies" by the third year after the deal. Malcolm Wilson, chief executive of GXO, remarked: "Wincanton is a world class business, and we have long been impressed by their high-quality people and diverse customer relationships across key industries."

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"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. Our superior offer reflects our conviction in the value of this business and the opportunities the combined company will realise."

Wincanton has not yet commented. The company said last month that it had agreed to be acquired by Ceva for an initial price of £567 million.

Ceva then increased the offer to value the group at around £605 million, as Wincanton revealed it had received a possible offer from GXO. It stated that there had been no formal proposal, including what the terms or price of an offer might be, but that any such proposal would be carefully considered.

Lawrence Matheson