Feb 19 (Reuters) - British competition regulator said on Wednesday U.S.-based warehousing firm GXO's GXO.N purchase of England-based logistics company Wincanton is likely to reduce competition in the supply of dedicated warehousing services to UK grocery customers.

The Competition and Markets Authority, which launched an in-depth investigation into the 762 million pounds ($958.67 million) acquisition in November, said the initial assessment by its independent inquiry group found that the deal could potentially increase fees and costs for grocers reliant on dedicated warehousing services.

($1 = 0.7948 pounds)

(Reporting by Radhika Anilkumar in Bengaluru; Editing by Shinjini Ganguli)

((Radhika.Anilkumar@thomsonreuters.com;))