The Competition and Markets Authority (CMA) has cleared the GXO-Wincanton merger, contingent upon the sale of Wincanton’s dedicated grocery warehousing business to a buyer approved by the CMA, as of today, June 19, 2025.
Earlier this year, the CMA issued an interim report in February, indicating concerns that the merger was “likely to reduce competition in the supply of dedicated warehousing services to grocery customers in the UK.”
This assessment followed GXO’s agreement to acquire Wincanton in April 2024.
The CMA’s recent summary report revealed that if competition decreases as a result of the merger, it could lead to higher costs for grocers. Such costs might ultimately be passed on to consumers, resulting in increased prices at the checkout. Furthermore, the inquiry found that this loss of competition “could hamper innovation and reduce service levels in the market—impacting the efficiency of goods reaching supermarket shelves.”
However, the CMA now believes that the proposed sale of Wincanton’s dedicated grocery warehousing business adequately addresses these competition concerns, thus allowing the merger to proceed. The CMA stated, “Following a thorough assessment of GXO’s proposals, including information-gathering from GXO and third parties, we found that a modified version of GXO’s divestiture remedy proposal would be sufficient to restore the competition lost as a result of the merger.”
Moving forward, the CMA plans to implement the remedy and will open the discussion to public consultation regarding the approach to be taken.
Richard Feasey, chair of the independent inquiry group, emphasized the importance of warehousing services in ensuring the seamless movement of goods across the UK. He stated, “Healthy competition in this market is key to managing costs for supermarkets and grocers and improving their performance—ultimately ensuring consumers pay the best possible prices for products in stores.”
He added, “We are pleased to approve this deal, having worked with GXO and Wincanton to secure the necessary changes to the deal which resolve our concerns.”
Commenting on the CMA’s decision, GXO CEO Malcolm Wilson expressed his satisfaction: “We are pleased to have the UK regulatory review concluded and are excited to bring the two businesses together. The combination of GXO and Wincanton will enhance GXO’s offering for customers across the UK and Ireland, positioning us for growth in strategic verticals.”
Wilson concluded, “We are well positioned to move forward swiftly and look forward to welcoming the Wincanton team to GXO.”
