The Competition and Markets Authority (CMA) has opened an investigation into the anticipated acquisition of Kuehne + Nagel Drinkflow Logistics by XPO Logistics.
In March Kuehne + Nagel revealed it was to sell a major part of its UK contract logistics portfolio to XPO Logistics.
As a result of the sale XPO will acquire the former drinks logistics, food services and retail and technology businesses of K+N. These operations generated a turnover of approximately CHF 750 million (£615.2 million) in 2019 and employ some 7,500 employees.
The CMA said it was considering whether it is or may be the case that this transaction, if carried into effect, will result in the creation of a relevant merger situation under the merger provisions of the Enterprise Act 2002 and, if so, whether the creation of that situation may be expected to result in a substantial lessening of competition within any market or markets in the United Kingdom for goods or services.
Phase 1 of the investigation launched today (18 September) following the European Commission’s decision to refer the case to the United Kingdom under Article 4(4) of the EC Merger Regulation.
The CMA is inviting comments on the transaction from any interested party. These comments should be provided to the CMA by 2 October 2020.
A decision is expected to be reached by 19 November.