CMA CGM faces a potential bidding war for UK logistics takeover target Wincanton, it has emerged.
London-listed Wincanton has confirmed that US-listed GXO Logistics has also approached it over a possible offer.
News of a potential other buyer comes after CMA CGM’s Ceva Logistics agreed to increase its offer.
“Further to recent press speculation … the board of Wincanton confirms that the approach was received from GXO Logistics for access to due diligence information … to enable GXO to evaluate a possible offer for the Company,” Wincanton said.
“Although GXO has indicated that it is considering making … a cash offer, as of the date of this announcement it has not provided the board of Wincanton with any formal proposal relating to a possible offer, including as to terms or price.
“If any such proposal is provided by GXO, the Board of Wincanton will carefully consider its terms, in conjunction with its advisers.”
The Wincanton directors said they continue to recommend unanimously to shareholders the increased and final cash offer from Ceva Logistics UK Rose Ltd, a wholly owned subsidiary of Ceva Logistics, itself a subsidiary of CMA CGM.
Wincanton said the UK competition authorities will announce the deadline by which GXO must clarify its position concerning Wincanton.
Ceva Logistics has agreed to increase its offer and to be issued share capital of Wincanton.
Under the terms of the increased offer, Wincanton shareholders would be entitled to receive £4.80 ($6.10) per share, a 6.7% increase on the original offer of £4.50 per share.
New opportunities
The increased offer price values the entire issued share capital of Wincanton at around £604.7m.
Rodolphe Saade, chief executive of CMA CGM, had previously 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.
Wincanton, which operates through a network with 5,000 drivers and 8,500 trucks/trailers, operates from more than 170 sites across the UK. It generated revenue of £1.46bn last year and underlying Ebitda of £121.9m.
