CMA warns GXO-Wincanton merger likely to reduce competition

The Competition and Markets Authority (CMA) has raised concerns about GXO's acquisition of Wincanton, indicating that the deal is likely to reduce competition in the dedicated warehousing services sector for UK grocery customers. An interim report from the CMA states that while alternatives such as DHL and in-house solutions remain, they may not be sufficient to prevent potential cost increases for supermarkets. Richard Feasey, chair of the CMA's inquiry group, emphasized that the merger could negatively impact service costs and choices for supermarkets reliant on efficient logistics. The CMA is currently inviting feedback from interested parties, with a final decision expected by April 30, 2025. GXO has contested the CMA's findings, asserting that the acquisition will not harm competition. The ongoing investigation introduces uncertainty regarding the transaction's approval and potential operational restrictions.