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Wincanton and Eddie Stobart discuss merger
Posted on Friday, 18 October 2019 09:54
Logistics companies Wincanton and Eddie Stobart are discussing a potential combination that could create one of the world’s largest transportation companies after Andrew Tinkler pulled his bid.
In a statement made to the London Stock Exchange, the two businesses said the former is undertaking due diligence in the latter to assess the potential merit for a merger.
However, both groups cautioned that no proposal has been made and there can be no guarantee that an offer will be tabled.
TVFB, which is controlled by former Stobart Group chief executive Tinkler, confirmed it has no intentions of making a bid to take over the business.
In the same statement, the group said it has received preliminary interest from DBAY Advisors and said discussions are ongoing, with the potential buyer having ten days to make a buyout offer or walk away.
Wincanton is likely to have to do the same with the deadline set for 15th November 2019.
The company claims to be the UK’s largest logistics firm providing supply chain consultancy and services some of the world’s best-known brands.
Wincanton employs some 17,600 staff across 200 sites, with a fleet of 3,600 vehicles.
Eddie Stobart was established in 1970 and operates around 2,700 trucks, 5,000 trailers and 43 operating centres in the UK and across Europe.
The group’s shares have been suspended at 70.00 pence in August after the company revealed that bosses had found a GBP 2.00 million accounting error.
Shortly after, Eddie Stobart warned its annual profits are set to be significantly below expectations.
According to Zephyr, the M&A database published by Bureau van Dijk, shows there have been 285 deals targeting freight transportation arrangement companies announced worldwide in 2019 to date.
In the largest of these, DSV launched a squeeze out in a takeover of Switzerland-based Panalpina Welttransport for CHF 5.40 billion (USD 5.45 billion).
Swiss company CEVA Logistics, SF Holding of China, and French firms Bollore and Staci, among others, have also been targeted in 2019 to date.
© Zephus Ltd