GXO Statement on U.K. Competition and Markets Authority's Interim Report Regarding Wincanton Acquisition

Core Viewpoint - GXO Logistics, Inc. asserts that the UK Competition and Markets Authority (CMA) has misjudged the competitive impact of its acquisition of Wincanton, emphasizing that the majority of Wincanton's business does not raise competition concerns and that the acquisition will enhance efficiency in the logistics sector [2][3][4]. Group 1: CMA Assessment - The CMA's focus is on a small group of large companies, which accounts for less than 10% of Wincanton's revenue, indicating a disproportionate assessment given Wincanton's total revenue exceeding £1.4 billion in 2024 [2]. - GXO disagrees with the CMA's view that the acquisition will likely reduce competition in dedicated warehousing services for UK grocers, highlighting that these companies possess significant pricing power and have various logistics options available [3]. Group 2: Benefits of the Acquisition - The combination of GXO and Wincanton is presented as pro-growth, expected to deliver efficiencies for UK businesses, lower overall service costs for consumers, and enhance the effectiveness and resilience of the logistics sector [4]. - There will be no cost impact to UK customers or consumers if the transaction is fully approved [4]. Group 3: Future Actions - GXO plans to present its response to the CMA during an upcoming hearing in March and aims for full clearance of the transaction by the end of April [5].