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GXO Statement on U.K. Competition and Markets Authority's Interim Report Regarding Wincanton Acquisition

1. CMA found no major competition concerns with Wincanton acquisition. 2. GXO argues that Wincanton merger promotes efficiency for UK businesses. 3. Total Wincanton revenue in 2024 was over £1.4bn. 4. GXO projects no cost impact to UK consumers from merger. 5. Upcoming hearing set for March regarding CMA's assessment.

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FAQ

Why Bullish?

The CMA's favorable initial report could lead to smoother acquisition proceedings, similar to past successful mergers like Amazon's acquisition of Whole Foods.

How important is it?

The article discusses GXO's significant merger implications, directly affecting its market positioning.

Why Short Term?

Approval decisions typically influence price movements, especially leading up to key hearings.

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WincantonAMZN
LONDON, U.K., Feb. 19, 2025 (GLOBE NEWSWIRE) -- GXO Logistics, Inc. (NYSE: GXO), the world’s largest pure-play contract logistics provider, today issued the following statement regarding the UK Competition and Markets Authority’s Interim Report. “The CMA has found no competition concerns with the vast majority of the Wincanton business. Its focus is limited to a very small group of large and sophisticated companies, which will represent less than 10% of Wincanton revenue. This assessment is disproportionate for a business whose total revenue in 2024 exceeded £1.4bn and does not accurately reflect the totality of evidence presented. “We disagree with the CMA’s initial assessment that GXO’s acquisition of Wincanton is likely to reduce competition in the supply of dedicated warehousing services to UK grocers. These companies have substantial pricing power, demonstrated ability to do this work themselves and the choice of a wide range of logistics players that are more than capable of servicing their needs. “GXO and Wincanton are a pro-growth combination that will deliver efficiencies for UK businesses, reduce the overall cost to serve UK consumers and help make the logistics sector more effective and resilient. Further, there is no cost impact to UK customers or consumers from the transaction being approved in full. “GXO has a long legacy of outstanding performance for customers in the UK and we believe the case for unconditional clearance is strong. We will present our response to the CMA at our upcoming hearing in March and continue to work towards full clearance of the transaction by the end of April.” About GXO GXO Logistics, Inc. (NYSE: GXO) is the world’s largest pure-play contract logistics provider and is benefiting from the rapid growth of ecommerce, automation and outsourcing. GXO is committed to providing an inclusive, world-class workplace for more than 150,000 team members across more than 1,000 facilities totaling approximately 200 million square feet. The company partners with the world’s leading blue-chip companies to solve complex logistics challenges with technologically advanced supply chain and ecommerce solutions, at scale and with speed. GXO corporate headquarters is in Greenwich, Connecticut, USA. Visit GXO.com for more information and connect with GXO on LinkedIn, X, Facebook, Instagram and YouTube. Media contact Brunswick David Litterick +44 7974 982455dlitterick@brunswickgroup.com Simon Sporborg+44 7974 982442ssporborg@brunswickgroup.com GXOMatthew Schmidt+1 203-307-2809matt.schmidt@gxo.com  

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