Wincanton stock pops 11% on GXO news

By:
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.

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Wincanton also receives raised offer from CMA

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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

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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.

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