CMA CGM Outbid by GXO for Wincanton

The competition to acquire UK-based logistics firm Wincanton is intensifying, with American warehousing company GXO Logistics outbidding CEVA Logistics, a subsidiary of CMA CGM.

GXO has proposed a deal offering 605 pence per Wincanton share, marking a significant 26% increase over the 480 pence per share previously offered by CEVA Logistics.

Initially, Wincanton had endorsed an enhanced and definitive proposal from the French shipping company on Monday, valuing the acquisition at approximately $766 million in cash, considering all shares. Nonetheless, GXO's newer proposal estimates Wincanton's worth at around $965 million on an enterprise level.

GXO articulated in its announcement, “The acquisition provides Wincanton shareholders with superior value to the CEVA final offer, as the acquisition price represents an increase of 125 pence per Wincanton share and, in aggregate, approximately £157m in the total offer value on a fully diluted basis, compared with the terms of the CEVA final offer.” GXO anticipates that Wincanton’s directors will endorse this acquisition proposal shortly.

CEVA had disclosed on Monday that investment groups Aberforth Partners and The Wellcome Trust, who collectively own slightly more than 16% of Wincanton's shares, had agreed to accept its bid. Additionally, other shareholders representing 19.4% of the shares expressed their support for CEVA’s offer.

Conversely, GXO has secured unequivocal backing from investors representing about 34% of Wincanton's issued share capital.

Wincanton operates within the UK and Ireland, serving sectors from food and consumer products to fuel and defense. GXO emphasized that merging with Wincanton would bolster its stature as a leading global provider of contract logistics services and promote the growth of shareholder value over time.