It has been announced that the UK competition regulator will investigate logistics firm GXO’s £764m acquisition of Wincanton.
The CMA issued an initial order to both companies on Wednesday afternoon as part of the probe.
Wincanton was the subject of a short bidding war between GXO, which owns Clipper Logistics, and the French container shipping firm CMA CGM in February and March.
CMA CGM, which tabled an offer of £605m, ultimately dipped out of its pursuit after GXO upped the stakes despite backing from Wincanton’s top brass. Management waved through the deal at the beginning of March.
The CMA said it was “considering whether to make a reference under section 22 or 33 of the [Enterprise] Act.”
US-based GXO’s offer for Wincanton was one of the many buyouts of London-listed firms that have been agreed over the past few years, many at large premiums to the market price.
GXO offered a 29 per cent premium to Wincanton’s previous record high share price of 470p reached during the period to 18 January, the last business day before Wincanton received a £567m bid from CEVA.
In February, Currys rejected a £700m offer from Waterstones owner Elliot Advisors. Direct Line shunned a £3.1bn proposal from its Belgian peer shortly after
Shares in the British logistics specialist dipped on the news, falling over 4 per cent by late afternoon.
Wincanton declined to comment. GXO did not immediately respond to a City A.M. request for comment.
