The American owner of Clipper Logistics has stepped up a bidding war for Wincanton by offering to buy the business for £762 million.
GXO Logistics has made a 605p-a-shareoffer as it seeks to outdo a rival suitor, the French shipping group CMA CGM, in the race for the UK-listed logistics company.
CMA CGM had offered 480p a share, which has been recommended by the Wincanton board, but the group is “considering its options” in light of the competing bid.
In an indication that the market is anticipating a higher offer, Wincanton shares rose by 115p, or 22.6 per cent, to 624p on Thursday.
Wincanton is a supply chain services provider that delivers food and goods, as well as operating storage facilities and home delivery services. It is based in Chippenham, Wiltshire, and has about 8,500 vehicles distributing products from more than 170 UK sites.
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Malcolm Wilson, chief executive of GXO, said: “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 for the benefit of both companies’ current and future customers. Our superior offer reflects our conviction in the value of this business and the opportunities the combined company will realise.”
GXO is a US logistics provider listed on the New York Stock Exchange with a market value of about $6.2 billion. The company generated net income of $229 million on revenue of $9.8 billion last year.
Wincanton found itself at the centre of a bidding war after its share price fell on the loss of a contract to provide border services to HM Revenue & Customs. A quarter of its market value was erased on the day it revealed the loss of the contract.
The Wincanton board has yet to respond to GXO’s offer. It had previously recommended that shareholders accept the offer made by CMA CGM as it represented a 62 per cent premium to the group’s share price before the deal became public on January 19.
GXO said it had received irrevocable undertakings from the owners of 34 per cent of Wincanton shares, including Wellcome Trust and Polar Capital. It said the support would not be binding if a competing offer was made at more than 695p a share.
