Wincanton bidding war heats up as USbased GXO trumps CEVA offer for UK logistics firm
US-based GXO Logistics has made a £762 million bid for British logistics firm Wincanton, sparking a bidding war as it surpasses the £480 million offer from CEVA Logistics. Wincanton shareholders holding 34% of the company's equity have backed GXO's bid, driving the company's shares up by 90% this year. GXO views the acquisition as a strategic move to enhance its global presence.
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FAQ - Wincanton Bidding War
Frequently Asked Questions (FAQ) - Wincanton Bidding War
1. Who are the main contenders in the bidding war for Wincanton?
The main contenders in the bidding war for UK's Wincanton are US-based GXO Logistics and French company Ceva Logistics, which is a subsidiary of CMA CGM.
2. What was the bid value offered by GXO Logistics for Wincanton?
GXO Logistics made a $965 million offer, which is equivalent to approximately £762 million, to acquire Wincanton.
3. How does GXO's bid compare to the previous offer made by Ceva Logistics?
GXO's bid was about 26% higher than the recommended offer previously made by Ceva Logistics.
4. What is the price GXO Logistics offered per share for Wincanton?
GXO offered 605p per share for Wincanton.
5. What was the market reaction to the news of GXO’s bid?
In response to the news of GXO’s bid, Wincanton’s shares rose by 19%.
6. Why is GXO Logistics interested in acquiring Wincanton?
GXO Logistics is interested in acquiring Wincanton as this move would bolster its position as a global pure-play contract logistics leader by expanding its presence in a key market and enhancing its platform.
7. What has been Wincanton's response to GXO's bid?
Wincanton declined to comment on GXO’s bid at the time the information was gathered.
8. How will the combination of CEVA and Bolloré Logistics affect CMA CGM's position if they were to acquire Wincanton?
Combining CEVA and Bolloré Logistics would strengthen CMA CGM’s logistics operations. However, they are currently in a bidding war with GXO for Wincanton.
9. Has CMA CGM recently completed any other significant deals?
Yes, CMA CGM recently closed a $5 billion deal with Bolloré, adding to its logistical capabilities.
10. What will happen next in the bidding process for Wincanton?
Under the UK Takeover Code, Wincanton is now obliged to provide GXO Logistics, as the new contender, with the same due diligence opportunities that were available to Ceva Logistics. This will be followed by potential counter offers or further negotiations.
Please note that these answers are based on information available from the provided search results as of my knowledge cutoff date in April 2023, and the situation might have evolved since then.