News / Ceva Logistics pulls out of race with GXO to acquire Wincanton

Ceva Logistics has formally given up on its plan to acquire the UK’s Wincanton.

The CMA CGM subsidiary upped its all-cash offer last month to an enterprise value of £802.7m ($1.01bn) after GXO expressed interest in the business. But Wincanton’s board last week recommended shareholders accept GXO’s £6.05 per share – giving it an enterprise value of £960m.

Ceva’s improved bid did allow it to make a counter offer by close of business tomorrow. But today it said it would not increase its offer.

“It is Ceva’s intention that the increased and final offer will lapse in due course,” it confirmed.

Ceva added: “Ceva felt that the increased and final offer represented a very attractive opportunity for all Wincanton stakeholders, notably its employees, clients and shareholders.

“As a global leader, CMA CGM will continue deploying its growth roadmap, leveraging its clear business strategy and very robust balance sheet, while always maintaining a clear focus on value creation with financial discipline in any acquisition.”

It said the UK would remain a core market for the CMA CGM group.

GXO, which integrated Clipper Logistics in 2022, said the Wincanton deal would help it expand in aerospace, utilities, industrial and healthcare sectors in the UK and Ireland.

It said: “The acquisition is highly synergistic. The GXO board’s expectation is that the combination will lead to full annual net run-rate synergies of £45m (pre-tax), based on procurement, and other operational overlap that can be realised by the third year of integration.”

It seems unlikely a better offer for GXO will arrive on the table now.