From Yahoo Finance: 2025-06-20 10:15:00

The UK Competition and Markets Authority approves GXO Logistics’ acquisition of Wincanton, contingent on divesting grocery warehousing operations to address competitive concerns. The merger will expand GXO’s presence in key sectors in the UK and Ireland. Concerns over reduced competition leading to higher costs for grocers prompt the divestiture.

GXO Logistics agrees to sell Wincanton’s grocery warehousing operations to alleviate competition worries, paving the way for the acquisition to proceed. The CMA’s independent inquiry group ensures the sale adequately resolves concerns regarding decreased competition and potential impact on pricing and service levels in the market.

The CMA’s independent inquiry group chair emphasizes the importance of healthy competition in the warehousing services market to manage costs for supermarkets and ultimately benefit consumers. The approval of the deal follows collaborative efforts with GXO and Wincanton to address competition issues and ensure a fair and efficient market.

GXO anticipates achieving annual net cost synergies of £45m (before tax) by the third year post-integration. The sale of Wincanton’s grocery warehouse unit to a CMA-approved buyer aims to enhance competition, efficiency, and pricing in the market.

Read more: GXO to sell Wincanton’s grocery warehouse unit to CMA-approved buyer