• Swindon & Wiltshire M&A, deals
• Thursday February 29 2024
• Author Name: Peter Davison

Bidding war over Wincanton as GXO launches rival bid

A bidding war has broken out over Chippenham-based logistics firm Wincanton, with American GXO logistics tabling a rival bid to that of French logistics firm CEVA Logistics UK.

As reported by Business Biscuit in January, CEVA made a bid valuing Wincanton at £764.9 million on terms that were accepted by Wincanton’s board.

Today (Thursday) GXO formally submitted its rival bid, which it says represents a premium of approximately 26 per cent to the increased and final offer price per Wincanton share of 480 pence from CEVA.

GXO CEO Malcolm Wilson said: ”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.

“Our superior offer reflects our conviction in the value of this business and the opportunities the combined company will realise.” “GXO has a long heritage in the UK and a demonstrated track record of seamlessly integrating businesses in this market.

“We’re proud that our operations support the growth of UK companies, create high-value jobs, and enhance the communities where we operate.

“As a focused pure play logistics leader, we are committed to investing in superior, differentiated logistics solutions, and we are confident that this combination will generate significant value for our shareholders, customers, and employees alike.”

Following the rival bid, the directors of Wincanton announced they intend to unanimously recommend a cash offer by GXO Logistics to acquire the business, withdrawing their recommendation to back  CEVA’s bid.

Latest: US logistics giant completes £762 million purchase of UK counterpart Wincanton