The CMA's Phase 1 investigation revealed that GXO's acquisition of Wincanton could diminish competition in mainstream contract logistics services (CLS) in the UK, affecting business customers.

Both companies provide CLS to retail (groceries, fashion) and non-retail sectors (manufacturing, construction), with GXO being the world's largest CLS company and Wincanton a key British supplier.

The deal may lead to increased costs for businesses relying on contract logistics services, as GXO and Wincanton are close competitors, especially in contracts with large retail customers.

The CMA is worried that although GXO faces competition from other providers, many are smaller or focus on specific industries, potentially limiting alternatives for customers.

Naomi Burgoyne, CMA's Senior Director of Mergers, highlighted the importance of CLS for efficient goods flow and timely deliveries, emphasizing the potential impact on consumer costs if competition is reduced.