Logistics deal could increase prices for UK business customers

Following its Phase 1 investigation, the Competition and Markets Authority (CMA) found that GXO Logistics (GXO) completing its purchase of Wincanton PLC could reduce competition for the supply of mainstream contract logistics services (CLS) in the UK.

Contract logistics services include distribution, transportation, warehousing and other supply chain services. GXO is the world's largest contract logistics services company and Wincanton is the UK supplier of these services. Both companies provide mainstream contract logistics services to business customers in the retail (e.g. grocery, fashion, apparel) and non-retail (e.g. manufacturing, construction) sectors.

The CMA investigation found that GXO and Wincanton were competing closely, particularly for contracts with large retail customers. GXOs will continue to face competition from other contract logistics providers, many of which are significantly smaller or focused on specific industries or types of logistics services (e.g. transportation). Some businesses have the option of bringing services in-house if their contract logistics provider does not provide good value, but the ability to do this will vary depending on the customer.

The CMA is therefore concerned that the deal could increase costs for businesses and other supply chain activities that rely on contract logistics providers to move goods across the UK.

The GXO must submit a proposal to address the CMA's concerns within five business days. If an appropriate offer is not submitted, the CMA will proceed with a more in-depth stage 2 investigation.

Naomi Burgoyne, senior director of mergers at the CMA, said:

Contract logistics services are critical to the flow of goods across the country, reducing delays and ensuring goods reach their destinations efficiently and reliably. These services are essential for millions of people who rely on just-in-time delivery or who can purchase products off-the-shelf.

The market is worth $16 billion in the UK, and there were concerns the merger could reduce competition and ultimately result in higher costs being passed on to consumers. We believe that an in-depth Phase 2 investigation into these competitive issues is warranted unless GXO provides a solution to address them.

More information about this case can be found on the GXO/Wincanton case page.

Note to editors: GXO announced an agreement to acquire Wincanton in February 2024. An interim enforcement order (IEO) was put in place to prevent the amalgamation of the two organizations while the CMA carried out a merger review, but the deal was not completed until April 2024. CLS encompasses a variety of B2B and B2C supply chain-related services that enable companies to supply goods to customers and consumers. These services include transportation and distribution, warehousing and additional value-added services. CLS in the retail market involves serving customers who produce consumer-facing products such as groceries, fashion, and clothing. This includes products ordered online, products that sell quickly and have a short shelf life due to high consumer demand or perishability (known as fast-moving consumer goods), and products that require temperature-controlled logistics services (including certain food and beverage products). ). CLS in non-retail markets involves serving customers with non-consumer-facing products or services, such as automotive, construction, energy, and manufacturing companies. The CMA found that customers often prioritize reputation, reliability and performance when choosing a CLS provider. Although there are other alternatives in the CLS market, GXO and Wincanton (along with DHL) are considered the leading providers of mainstream CLS services, particularly for grocery retail customers. Guidance on CMA merger jurisdiction and procedures can be read here. All media inquiries should be directed to the CMA Press Office by email ([email protected]) or phone (020 3738 6460).

What Are The Main Benefits Of Comparing Car Insurance Quotes Online

LOS ANGELES, CA / ACCESSWIRE / June 24, 2020, / Compare-autoinsurance.Org has launched a new blog post that presents the main benefits of comparing multiple car insurance quotes. For more info and free online quotes, please visit https://compare-autoinsurance.Org/the-advantages-of-comparing-prices-with-car-insurance-quotes-online/ The modern society has numerous technological advantages. One important advantage is the speed at which information is sent and received. With the help of the internet, the shopping habits of many persons have drastically changed. The car insurance industry hasn't remained untouched by these changes. On the internet, drivers can compare insurance prices and find out which sellers have the best offers. View photos The advantages of comparing online car insurance quotes are the following: Online quotes can be obtained from anywhere and at any time. Unlike physical insurance agencies, websites don't have a specific schedule and they are available at any time. Drivers that have busy working schedules, can compare quotes from anywhere and at any time, even at midnight. Multiple choices. Almost all insurance providers, no matter if they are well-known brands or just local insurers, have an online presence. Online quotes will allow policyholders the chance to discover multiple insurance companies and check their prices. Drivers are no longer required to get quotes from just a few known insurance companies. Also, local and regional insurers can provide lower insurance rates for the same services. Accurate insurance estimates. Online quotes can only be accurate if the customers provide accurate and real info about their car models and driving history. Lying about past driving incidents can make the price estimates to be lower, but when dealing with an insurance company lying to them is useless. Usually, insurance companies will do research about a potential customer before granting him coverage. Online quotes can be sorted easily. Although drivers are recommended to not choose a policy just based on its price, drivers can easily sort quotes by insurance price. Using brokerage websites will allow drivers to get quotes from multiple insurers, thus making the comparison faster and easier. For additional info, money-saving tips, and free car insurance quotes, visit https://compare-autoinsurance.Org/ Compare-autoinsurance.Org is an online provider of life, home, health, and auto insurance quotes. This website is unique because it does not simply stick to one kind of insurance provider, but brings the clients the best deals from many different online insurance carriers. In this way, clients have access to offers from multiple carriers all in one place: this website. On this site, customers have access to quotes for insurance plans from various agencies, such as local or nationwide agencies, brand names insurance companies, etc. "Online quotes can easily help drivers obtain better car insurance deals. All they have to do is to complete an online form with accurate and real info, then compare prices", said Russell Rabichev, Marketing Director of Internet Marketing Company. CONTACT: Company Name: Internet Marketing CompanyPerson for contact Name: Gurgu CPhone Number: (818) 359-3898Email: [email protected]: https://compare-autoinsurance.Org/ SOURCE: Compare-autoinsurance.Org View source version on accesswire.Com:https://www.Accesswire.Com/595055/What-Are-The-Main-Benefits-Of-Comparing-Car-Insurance-Quotes-Online View photos