CMA CGM has decided to drop its bid for British logistics firm Wincanton amid a rival takeover bid.
On Tuesday CEVA Logistics, who sold 97.89% of its shares to the French line for $1.65bn in February 2019, said it would not increase its takeover.
This emerged after Ceva was outdone by US-based warehousing firm GXO Logistics, Asia Shipping Media has reported.
Last week, the owner of Clipper Logistics logged a bid under which shareholders would get 605 pence in cash for each Wincanton share held – up by more than a quarter from CEVA Logistics’ at-the-time improved offer of 480 pence per share.
The same week, the London-listed Wincanton threw its weight behind the $965m bid from GXO, having previously accepted CEVA’s offer.
In the meantime CMA CGM has completed the $5.25bn acquisition of Bolloré Logistics.
The carrier, who has embarked on an “integration strategy” will multiple forwarders, first closed in on Wincanton on January 19 at 450 pence or a 52% premium to the company’s stock price the day before the offer, while XGO’s bid was at a 104% premium to Wincanton’s closing share price on that day.
The acquisition of Wincanton would have signified notable growth in CMA CGM’s logistics operations, reflecting the company’s overarching plan to increase its market share in the logistics industry, especially in the UK.
CMA CGM had until close of business tomorrow to counter GXO but instead said it would allow its offer for Wincanton to lapse – most likely setting the stage for the rival to close the deal.
“As a global leader, CMA CGM will continue deploying its growth roadmap, leveraging its clear business strategy and very robust balance sheet, while always maintaining a clear focus on value creation with financial discipline in any acquisition,” the line has stated. – Splash 247.
