Logistics deal could raise prices for business customers in the UK

"On 01/11/2024, the Competition and Markets Authority issued an update regarding Logistics deal could raise prices for business customers in the UK.

The CMA has found that GXO Logistics' completed purchase of Wincanton PLC could reduce competition in the supply of mainstream contract logistics services (CLS) in the UK.

Contract logistics services include distribution, transport, warehousing and other supply chain services.

GXO is the world’s largest contract logistics services company, and Wincanton is a British supplier of these services.

The CMA's investigation found that GXO and Wincanton compete closely, particularly for contracts with large retail customers.

However, GXO will continue to face competition from other contract logistics providers, although many are significantly smaller or focus on specific industries or types of logistics services.

The deal could raise costs for businesses that rely on contract logistics suppliers to move goods around the UK and for other supply chain activities.