Wincanton stock pops 11% on GXO news

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Written on Feb 26, 2024

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GXO Logistics is reportedly interested in taking over Wincanton.
CMA raised its offer for $WIN to 480 pence per share today.
Winton stock has more than doubled over the past four months.

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Wincanton plc (LON: WIN) is up 11% on Monday following a report that GXO Logistics Inc (NYSE: GXO) is interested in taking over the company based out of Chippenham, United Kingdom.

Wincanton also receives raised offer from CMA

What GXO is willing to pay for Wincanton remains unknown.

The news arrives shortly after CMA agreed to buy Wincanton for 450 pence a share. On Monday, the French shipping giant further raised its offer for the London-listed firm to 480 pence per share.

Its new proposal values Wincanton plc that currently pays a dividend yield of 2.63% at over £600 million. The logistics company told its shareholders to “take no action at this time with regard to the approach by the potential competing bidder” today.

$WIN has now more than doubled over the past four months.

Wincanton counts Waitrose and Asda as customers

In 2022, GXO spent some $1.3 billion on buying Clipper Logistics – a U.K based shipping firm.

Whether or not its potential acquisition of Wincanton will raise antitrust concerns remains unclear, as per the Sky News report on Monday. $GXO is also trending up in premarket today.

In November, Wincanton plc said it generated about £694 million in revenue in the first half of 2023 – down 7.8% on a year-over-year basis.

The London-listed company counts notable names including Waitrose, Sainsbury’s, and Asda as customers and has a workforce comprising about 20,000 in total across the U.K. Neither GXO nor Wincanton has so far commented on the news this morning.