CMA thinks GXO's takeover of Wincanton could 'reduce choice for supermarkets'

(Sharecast News) - The Competition and Markets Authority said on Wednesday that GXO's takeover of Wincanton would likely reduce competition and drive costs for supermarkets higher. The watchdog published its initial assessment of the £762.0m deal following a year-long investigation, noting that GXO and Wincanton were currently two of three UK suppliers of dedicated warehousing services used by grocers.

The CMA's initial assessment was that the remaining alternatives "would not be sufficient" to prevent fees rising and that the deal "could raise costs for grocers".

Richard Feasy, chair of the independent inquiry group, said: "Our initial view is that this merger could raise the costs of these services and reduce choice for supermarkets who rely on these services for moving goods across the country.

"We want to ensure competition in this market is working as well as it can to manage costs for supermarkets and grocers, and ensure products continue to reach supermarket shelves efficiently."













Reporting by Iain Gilbert at Sharecast.com