The Competition and Markets Authority (CMA), which has been investigating the GXO-Wincanton merger for potential issues surrounding loss of competition, has today [19 June 2025] announced that it has cleared the merger, subject to the sale of Wincanton’s dedicated grocery warehousing business to a CMA-approved buyer.
Prior to this, the CMA published an interim report in its investigation in February this year, in which it said that the takeover was ‘likely to reduce competition in the supply of dedicated warehousing services to grocery customers in the UK’.
This was after GXO agreed to acquire Wincanton in April 2024.
In summary report published today, the independent inquiry group leading the CMA’s investigation found that a loss of competition as a result of the merger “would likely lead to higher costs for grocers which, in turn, could be passed onto shoppers across the UK and lead to more expensive products at the checkout”.
This loss of competition, the inquiry group found “could hamper innovation and reduce service levels in the market – impacting the efficiency of goods reaching supermarket shelves”.
But now, with the offer to sell Wincanton’s dedicated grocery warehousing business, the CMA has said it is satisfied that this remedy “sufficiently addresses its competition concerns and is therefore clearing the deal”.
The CMA said: “Following a thorough assessment of GXO’s proposals, including further information-gathering from GXO and third parties, we found that a modified version of GXO’s divestiture remedy proposal, encompassing Wincanton’s dedicated warehousing business serving grocery customers, would be sufficient to restore the competition lost as a result of the merger.”
Moving forward, the CMA has said it will now take steps to implement the remedy, and will consult publicly on the approach to be taken.
Richard Feasey, chair of the independent inquiry group, said: “Warehousing services play a crucial role in ensuring the seamless movement of goods across the UK, allowing our supermarkets to maintain well-stocked shelves with thousands of items we buy every day.
“Healthy competition in this market is key to managing costs for supermarkets and grocers and improving their performance – ultimately ensuring consumers pay the best possible prices for products in stores.
“We are pleased to approve this deal, having worked with GXO and Wincanton to secure the necessary changes to the deal which resolve our concerns.”
Commenting on the CMA’s decision, CEO of GXO Malcolm Wilson said: “We are pleased to have the UK regulatory review concluded and are excited to bring the two businesses together.
“The combination of GXO and Wincanton will enhance GXO’s offering for customers across the UK and Ireland and bring presence in strategic verticals that will serve as a springboard for growth.
“We are well positioned to move forward swiftly and look forward to welcoming the Wincanton team to GXO.”
Logistics Manager has approached Wincanton for comment.
A panel of experts from Wincanton will take part in a fireside-style discussion surrounding the use of digital transport technologies to reach net zero goals at this year’s Sustainable Supply Chain Conference, returning to London on 24 June 2025. Click here to find out more about Wincanton’s session!
