The Competition and Markets Authority (CMA) in the UK has cleared the merger between logistics providers GXO and Wincanton, but with specific conditions aimed at preserving competition in the grocery warehousing sector. The CMA's independent inquiry group determined that the merger could potentially reduce competition, leading to higher costs for grocery customers and ultimately affecting consumers at checkout.

To address these concerns, GXO has agreed to divest Wincanton's dedicated grocery warehousing business to a buyer approved by the CMA. This remedy is seen as sufficient to alleviate the competition issues identified during the investigation, allowing the merger to proceed.

Logistics, particularly warehousing, is vital for the efficient operation of supermarkets and other businesses in the UK. Effective logistics systems help minimize costs and ensure product availability, which is crucial for maintaining well-stocked shelves. Richard Feasey, Chair of the inquiry group, emphasized the importance of healthy competition in this market for managing costs and improving supermarket performance, ultimately benefiting consumers.

The CMA has also issued an interim order allowing GXO and Wincanton to begin integration, provided that Wincanton's grocery warehousing business is properly ringfenced until it is sold to a suitable buyer. The final report detailing the inquiry's findings will be published on the CMA's case page in the near future.