Wincanton shares drive 46% higher on CMA bid
France's CMA CGM is set to buy UK logistics firm Wincanton in a deal worth $700 million. IGTV financial analyst @AngelineOng looks at why Wincanton’s business is key to the French company’s push into British logistics.
(Video Transcription)
French shipping firm announces Wincanton purchase
We're seeing a lot of mergers and acquisitions (M&As), especially in the logistics space. Just turning my attention to Wincanton because the shares of the supply chain giant for British businesses are currently some 47%. Let's just check on that and zoom in for you to see what it is doing right now.
And I can tell you that on the IG platform, it is soaring around 46% still, this coming after news that the French shipping firm, I believe this is CMA CGM, announced that it is going to buy Wincanton in a deal worth around $700 million.
CMA CGM board urges shareholders to support bid
Now this will take CMA CGM’s recent push in logistics in the UK to another level, especially in the grocery sector, the supermarket sector that CMA wants to get a further foothold in.
Now this all-cash offer for Wincanton is around 450 pence a share, representing a premium of 52% to Wincanton stock closing price of 297 pence on Thursday. The deal is expected to close, with Wincanton saying its board intends to recommend unanimously that its shareholders vote in favour of CMA CGM bid.
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