CMA CGM is fighting an uphill battle to acquire UK logistics company Wincanton, whose board has thrown its weight behind a rival offer.
Directors at London-listed Wincanton have formally accepted an offer from US-listed GXO Logistics, which has submitted a significantly higher bid.
The UK haulage company is backing a £762m ($965m) takeover offer from the US firm and has withdrawn its support for an earlier bid submitted from the French shipping and logistics group.
Wincanton said its directors intend to recommend unanimously an offer of £6.05 ($7.6) per share made by GXO on Thursday.
The price is a 29% premium to the all-time high Wincanton share price of £.4.70 on 18 January.
“The Board of Wincanton is pleased that GXO recognises the very significant value inherent in this business and intends to recommend the offer to shareholders for their consideration,” Wincanton chairman Martin Read said in a statement.
“We have long been clear that Wincanton is a great business with a compelling strategy, strong customer relationships and excellent people.
“Under the current management team, we have made positive progress and ensured that Wincanton is at the forefront of logistics innovation,” he said.
Where now?
CMA CGM made its initial bid in January through Ceva Logistics UK Rose Ltd, a wholly owned subsidiary of Ceva Logistics, itself a subsidiary of CMA CGM.
The company originally offered £4.50 per share, before raising its offer to Wincanton shareholders on 26 February to £4.80 ($6.10).
That is, however, some £1.25 lower than what GXO has placed on the table.
The move leaves CMA CGM ruing its options for its logistics division.
Rodolphe Saade, chief executive of CMA CGM, has said that bringing together the two entities would strengthen his group’s footprint in the UK and Ireland, paving the way for new opportunities and more innovative product offerings.
The French carrier has been prioritising logistics and last week completed the €4.85bn ($5.25bn) acquisition of French peer Bollore Logistics.
That was the biggest acquisition in the liner giant’s history, as part of a drive to develop a second logistics leg to stand on alongside its traditional maritime business.
The company has appointed Thierry Ehrenbogen as senior vice president of development & strategic account, effective on 1 March.
Ehrenbogen was previously chief executive of Bollore Logistics, which has been acquired by CMA CGM.
He will be responsible for leading the key strategic accounts and ensuring commercial synergies among CMA CGM’s shipping, logistics and air freight divisions.
