(Alliance News) - GXO Logistics Inc on Wednesday said it has received approval from the Guernsey Financial Services Commission for the acquisition of Wincanton PLC.
GXO and Wincanton are both logistics providers. GXO is based in Greenwich, and it is listed on the New York Stock Exchange. Wincanton is based in Wiltshire, England.
This comes after it was reported earlier this month that GXO had announced an offer of 605 pence per share in cash for Wincanton.
The offer from GXO trumped by more than a quarter a previously agreed takeover offer from CEVA Logistics UK Rose Ltd, a subsidiary of Marseilles, France-based shipping and logistics company CMA CGM.
CEVA recently had increased its own offer for Wincanton to 480p per share from its original bid of 450p, which was made in January.
GXO then received irrevocable undertakings from Wellcome Trust Ltd and Polar Capital Funds PLC to accept its offer for Wincanton. The undertakings would cease only in the case of a competing bid of more than 695p per share.
As a result, GXO said it had support for its offer from shareholders representing 34% of Wincanton's equity.
As a result, Wincanton recommended "unanimously" the GXO offer and, withdrew its recommendation of the bid by CEVA.
Wincanton Chair Martin Read said he was "pleased that GXO recognises the very significant value inherent in this business".
In 2022, GXO purchased Clipper Logistics PLC in the UK in a deal worth GBP1 billion. Consequently, its offer for Wincanton could face competition hurdles.
Shares in Wincanton were up 0.2% at 601.00 pence each in London on Wednesday morning.
By Sabrina Penty, Alliance News reporter
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Wincanton (WIN)