By Ian Walker
The U.K. Competition and Markets Authority said GXO Logistics' $964.9 million acquisition of peer Wincanton could reduce competition and raise prices for customers.
The regulator said Friday that both logistics companies compete closely, particularly for contracts with large retail customers and that it is concerned the deal could raise costs for businesses.
It has given GXO five working days to address its concerns and if none are forthcoming, the CMA will start a second, more in-depth investigation into the deal.
Responding to this, GXO said it was reviewing the decision and will continue to engage with the CMA to secure a positive outcome.
"We remain confident in obtaining regulatory clearance and look forward to beginning to integrate our two great businesses," GXO said.
GXO Logistics made its offer to buy Wincanton in February and the deal completed in April, whereupon Wincanton ceased trading on the London Stock Exchange.
The regulator has already issued an initial enforcement offer preventing the companies from integrating while it conducts its review.
Write to Ian Walker at ian.walker@wsj.com
(END) Dow Jones Newswires
November 01, 2024 09:52 ET (13:52 GMT)
Copyright (c) 2024 Dow Jones & Company, Inc.
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