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Wincanton takeover could be first of many, says M&A expert

[ April 11, 2024   //   ]

Following the vote by Wincanton to approve the takeover by GXO, the US firm’s takeover of the UK firm is not surprising due to the value of the Pound against the Dollar, says merger and acquisition specialist, Tom Whelan

The partner at the international law firm Reed Smith, adds that this may be one of a number of takeovers of UK companies across a host of different sectors this year.

He said: “The deal spells really good news for UK PLCs. The fact that two international companies had bid for Wincanton shows clearly that quality listed UK businesses are still very much in fashion.”

French-based shipping and logistics giant CMA CGM also bid for Wincanton and at one stage looked to have clinched a deal, before GXO stepped in with its offer.

Whelan added: “It’s not hugely surprising that Wincanton should be snapped up by a US buyer, with the value of the Pound against the Dollar making UK companies relatively cheap propositions. Thanks to favourable exchange rates I think we will almost certainly see more bids for other listed UK and European companies this year from overseas buyers and especially from US-based companies and sponsors.

“Given strong recent performance, I think foreign buyers are going to be taking a very close look at companies within UK logistics, healthcare, telecoms and technology, food, energy and renewables, and financial services. Today’s deal could well be part of a broader trend, and one that shows UK markets are alive and kicking.”

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