CEVA Logistics, a subsidiary of French shipping giant CMA CGM, has upped its bid for Wincanton, a prominent British logistics firm. The revised offer now stands at approximately $766.2 million, marking a significant increase from the initial bid in January.
The latest offer from CEVA Logistics amounts to 480 pence per share in cash, reflecting a 6.7% surge from its original proposal of 450 pence per share. This heightened bid comes amidst escalating competition as another bidder emerges on the scene, potentially poised to challenge CEVA’s acquisition plans.
Wincanton’s stock, which closed at 449 pence on the preceding Friday, experienced a notable uptick, surging by 10% to 494 pence during early trading hours on Monday following the announcement of CEVA’s revised offer.
While Wincanton’s board has signaled its endorsement of CEVA’s enhanced bid, acknowledging it as both “increased and final,” the company disclosed that it has received overtures from a potential competitor. Despite the interest from the unnamed contender, Wincanton clarified that it is yet to receive a formal proposal.
Acquiring Wincanton holds strategic importance for CMA CGM, which is looking to leverage its financial resources and operational expertise to expand its footprint in the UK market. With CEVA Logistics poised to integrate Wincanton’s capabilities in warehousing management and grocery logistics, the acquisition is expected to bolster CEVA’s service portfolio, enhancing its competitive edge in the region.
Wincanton, renowned for its comprehensive suite of services encompassing storage, handling, and distribution across various sectors including food, consumer goods, manufacturing, fuel, and defense, operates from a network of over 170 sites across Britain and Ireland.
The transaction, subject to regulatory approvals and shareholder consent, signifies a strategic maneuver by CMA CGM to reinforce its position in the global logistics landscape while tapping into the lucrative opportunities presented by the UK market.
As the bidding war unfolds and speculation surrounding potential competing offers intensifies, market analysts keenly observe the developments, anticipating their implications on the dynamics of the maritime, breakbulk, project freight, cargo, and logistics sectors.
Source: reuters
