Watchdog to probe GXO's takeover of Wincanton
GXO LOGISTICS INCORPORATED
$50.75
11:10 13/09/24
The UK competition watchdog has launched a merger inquiry into GXO Logistics’ £762m acquisition of Wincanton, it was confirmed on Friday.
British distribution firm Wincanton agreed to be taken over by the US firm in March, with the deal completing at the end of April.
However, on Friday the Competition and Markets Authority said it was investigating the completed acquisition and launched a phase 1 merger inquiry.
Interested parties have been invited to comment, with a deadline of 20 September.
The regulator will then decide whether or not to refer the merger for a phase 2 investigation by 1 November.
It a brief statement, the CMA said it was considering whether or not the merger could result in a “substantial lessening” of competition within any markets in the UK for goods or services.
The CMA issued an initial enforcement order in April, under which it assessed whether or not the deal merited further investigation. The deal was allowed to go ahead while it came to its conclusions, however.
A GXO spokesperson said: “We are a pleased the review has commence as expected, and look forward to constructive engagement with the CMA throughout the process.”