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A bidding war for Wincanton sent shares in the UK logistics company up sharply on Thursday, after US rival GXO made an offer valuing its stock 26 per cent higher than an existing recommended offer for the group.
GXO’s cash proposal — of 605p a share, valuing the company’s equity at £762mn — is the second improved offer for Wincanton this week. France’s CMA CGM, operator of the world’s third-largest container ship fleet, on Monday increased its offer for Wincanton by 6.7 per cent to 480p after Wincanton said it had received a “potential competing offer”.
CMA CGM said it “noted” GXO’s offer and added that it was “considering its options”.
GXO said its offer gave Wincanton an enterprise value of £764mn, reflecting the UK company’s low level of debt as assessed under GXO’s US accounting standards.
Wincanton’s shares rose more than 20 per cent on Thursday to 613p, suggesting investors think there could be scope for a further bid. Wincanton’s shares were trading at 297p on January 18 before the announcement of CMA CGM’s initial, 450p-a-share offer.
GXO said it believed buying Wincanton would boost its position in a key market in the UK and Ireland. Wincanton specialises in contract logistics, handling distribution and other logistics operations for business customers.
GXO chief executive Malcolm Wilson said Wincanton was a “world-class business” with “diverse customer relationships across key industries”.
“The combination of GXO’s technological capabilities and global reach with Wincanton’s proven expertise in the UK and Ireland markets will enhance our offering,” he added.
CMA CGM pointed out that, while it had said its offer on Monday was final, it had the right to increase it if there was a higher offer from a rival. It added that under the UK’s Takeover Code it had four business days to decide on any further improvement to its bid.
Documents published alongside GXO’s offer showed that the UK’s Takeover Panel told the US company on Tuesday that it had until March 6 — a week before a Wincanton shareholder meeting due to approve the CMA CGM offer — to issue a firm offer.
Wincanton is one of the few remaining independent listed logistics companies on the London Stock Exchange.
The sector has consolidated in recent years, partly because container shipping lines have sought to use the profits they made during the pandemic to buy logistics businesses and expand the scope of their operations.
CMA CGM’s bid for Wincanton was made by its subsidiary Ceva Logistics, a logistics company that it acquired in 2019. Mediterranean Shipping Company, the world’s biggest container line, and Maersk, the market number two, have also expanded their logistics operations in recent years, both through organic growth and acquisition.
Wincanton’s board on Monday recommended that shareholders accept the improved 480p bid for CMA CGM. GXO said on Thursday it had irrevocable undertakings to support its bid from 34 per cent of Wincanton’s shareholders.
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