(Reuters) -French shipping firm CMA CGM is set to buy British logistics firm Wincanton in a deal worth about $700 million that will take CMA CGM’s recent push in logistics to the UK supermarket sector.
Through its CEVA Logistics unit, CMA CGM has made an all-cash offer for Wincanton of 450 pence-per-share offer, representing a premium of 52% to Wincanton stock’s closing price of 297 pence on Thursday, the two companies said in a joint statement on Friday.
Wincanton said its board intends to unanimously recommend that its shareholders vote in favour of CMA CGM’s bid, which would lead to the UK company being delisted from the stock market.
The offers values Wincanton at 566.9 million pounds ($718.77 million) on a fully diluted basis, the companies said.
“It is a unique opportunity to expand CEVA’s offering in the UK, and to acquire complementary grocery and consumer expertise,” they said.
CMA CGM, privately controlled by the Saade family, has made a series of acquisitions in logistics firms, port terminals and French media, supported by huge shipping profits in the wake of the COVID-19 pandemic.
Wincanton shares jumped 47% in early trading on Friday and touched their highest since July 2021.
Wincanton is active in the UK and Ireland in markets from food and consumer goods to fuel and defence, and operates from more than 170 sites.
The acquisition is being done by CEVA through a newly-formed entity CEVA Logistics UK Rose Ltd.
($1 = 0.7887 pounds)
(Reporting by Aby Jose Koilparambil in Bengaluru and Gus Trompiz in Paris; Editing by Subhranshu Sahu, Savio D’Souza and Susan Fenton)
