CMA CGM Increases Offer to Acquire Logistics Co. Wincanton

The French shipping giant CMA CGM has escalated its bid to acquire Wincanton, a prominent UK logistics company, offering approximately $766 million in cash. This move comes as Wincanton attracts attention from another potential suitor.

This heightened proposal, executed through its CEVA Logistics division, marks an increase of around $47-$48 million from the initial offer made in January. The original bid had already represented a substantial 52% premium over the stock price of Wincanton at that time.

Wincanton, which is listed on the London Stock Exchange, has indicated that its board unanimously supports this revised and final bid. Nevertheless, the firm has also acknowledged an approach by an unidentified potential competitor, though a formal bid has yet to be presented.

CEVA disclosed on Monday that it has secured commitments from shareholders Aberforth Partners and The Wellcome Trust, who together hold slightly more than 16% of Wincanton's shares. Furthermore, shareholders representing an additional 19.4% of the company have expressed their backing for the acquisition.

Under the leadership of Rodolphe Saadé, CMA CGM has pursued an aggressive expansion strategy within the logistics sector. This strategy has included acquisitions such as Bolloré Logistics and the commerce and lifecycle services operations of Ingram Micro. Leveraging the profits from a surge in container shipping, the Marseille-based conglomerate has diversified its holdings to include port terminals, aircraft, and various media ventures.

Wincanton boasts a near-century legacy, operating across the UK and Ireland in sectors as diverse as food and consumer products, fuel, and defence. The acquisition is poised to significantly expand CEVA's operational footprint, adding over 170 sites to its existing network of nearly 900 contract logistics and freight warehouses, alongside facilitating the shipment of approximately 520,000 tons of air freight and 1.3 million TEU (Twenty-Foot Equivalent Units).