Wincanton acquisition – what could it mean for them and the market?

French shipping firm, CMA CGM, is set to buy Wincanton, one of the largest remaining British-owned, FTSE-listed third-party logistics provider (3PL). Chris Clowes comments on what this could mean for the businesses involved and how the trend for acquiring major providers could impact the wider 3PL market.

Chris Clowes, senior consultant and lead for European projects at global supply chain and logistics consultancy, SCALA, commented: “Wincanton is one of the largest remaining British-owned, FTSE-listed 3PLs, so this is big news for the logistics sector – major deals like this simply don’t happen every day. 

“It remains to be seen exactly what the impact of the acquisition will be but, as we underlined in our recent good practice guide, mergers and acquisitions can be an effective route to growth and successful integration post-acquisition could see all parties reap the benefits. For example, this deal represents a significant opportunity for CMA CGM’s CEVA Logistics unit to expand its UK footing. Meanwhile, both businesses could cut costs by combining warehouse and transport networks, while expanding their respective service offerings.

“While this deal is major news for the sector, it follows a growing trend we’ve seen over the last two decades, in which large British 3PLs are slowly being acquired. Already, major players like Clipper, TDG, and now Wincanton have been bought by larger companies. But with market evolution comes opportunity. As global providers inevitably set their sights on larger customers, medium British 3PLs can offer tailored, bespoke services to domestic customers and catalyse growth. What’s more, we’re seeing an increasing number of new entrants that offer specific solutions for start-ups and SMEs come to market, who stand to benefit from the newly available space to target prospects.

“Despite the opportunities in the 3PL market, though, we’re still anticipating a turbulent 2024 for logistics and supply chain operations. We’re already seeing British hauliers go out of business at a rate of around one per week, due to declines in volume and continued increases in cost. And looking beyond the UK, wider European and global operations face another challenging year as leaders navigate changing circumstances.”