How the GXO Logistics & Wincanton Merger Boost Supply Chains

The Competition and Markets Authority (CMA) has approved a merger between GXO Logistics, a global contract logistics company based in the US, and Wincanton, a leading supply chain partner to British businesses, with the caveat of a further sale.

The British supply chain company was acquired by GXO in April 2024, creating an inquiry by the CMA which came to an end in June 2025.

The merger relies on the sale of Wincanton’s grocery warehousing business to a CMA-approved buyer as a means to keep costs down throughout the supply chain.

GXO and Wincanton are two of the three largest and most successful suppliers in the UK in dedicated warehousing, particularly for grocery customers.  

The competitive edge

The CMA seeks to promote competitive markets to increase the benefits of consumers, and must investigate mergers that could reduce this competition. 

In its final report, the organisation discovered that a merger without a sale would lessen the competition in the supply of warehousing services for grocery products. 

This, in turn, increases the cost throughout the supply chain, from production to consumer purchase at checkout.

The Wincanton warehouse must be sold to a CMA-approved buyer in order to maintain a competition in the warehouse business, otherwise costs rise for grocers, which will affect in-store prices.

Richard Feasey, Chair of the Independent Inquiry Group, says: “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. 

“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.”

The warehouse supply chain

With a potential increase in prices following the merger – if Wincanton’s warehouse is not sold – many grocery customers would switch to self-supplying their warehouses as a means to keep costs down and control their supply chain.

If customers oversee their own supply chain, the warehouses would see less competition and less work. This reduces service levels in the manufacturing process and lessens efficiency throughout the supply chain.

Richard adds: “Warehousing services play a crucial role in ensuring the seamless movement of goods across the UK, allowing our supermarkets to maintain well-stocked shelves with thousands of items we buy every day.” 

Bringing growth to GXO

The merger between GXO and Wincanton sees a growth in efficiency in running Wincanton’s assets, as GXO’s global expertise will greatly benefit production.

With GXO’s investments into the UK economy, its secure supply chain and workforce can benefit customers by remaining within the UK. 

Malcolm Wilson, Chief Executive Oslaafficer at GXO says: “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 and bring presence in strategic verticals that will serve as a springboard for growth. We are well positioned to move forward swiftly and look forward to welcoming the Wincanton team to GXO.”

With the sale of the warehousing business, the GXO and Wincanton merger could prove beneficial for efficiency in supply chains, lower costs for products, and an assurance of product availability.

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