In a dramatic twist, British logistics firm Wincanton has made a strategic pivot, withdrawing support for CEVA’s proposed deal and favoring GXO Logistics’ higher offer, valuing the company at an impressive £762 million ($962.3 million). GXO’s competitive bid of 605 pence per share, unveiled on Thursday, outshone CEVA’s “increased and final” bid of approximately 480 pence apiece presented earlier in the week.
GXO, eyeing expansion into the UK’s aerospace, utilities, industrial, and healthcare sectors, sees Wincanton as a strategic ally providing a “springboard” for industrial services across Europe. Wincanton, with operations in the UK and Ireland, specializes in delivering supply chain solutions to a diverse range of businesses, boasting clients like IKEA, Primark, and BAE Systems.
CEVA, a unit of the French shipping giant CMA CGM, responded to GXO’s bold move by stating it would assess its options after being outbid. The acquisition saga began in January when CEVA initially proposed buying Wincanton for 450 pence a share, subsequently raising its offer on Monday.
Including assumed debt, GXO’s substantial offer values Wincanton at around £960 million. Wincanton’s Chairman, Martin Read, expressed the board’s satisfaction with GXO’s recognition of the “very significant value inherent in this business” and conveyed the intention to recommend the offer to shareholders for their consideration.
