The Competition and Markets Authority (CMA) has greenlighted an initial investigation into the £965m takeover of Clipper Logistics by GXO Logistics.
Clipper and GXO had reached agreement in February this year on a deal which offered Clipper shareholders 690 pence in cash plus 0.0359 new GXO shares, per share. GXO had also received irrevocable undertakings from Steve Parkin and all other Clipper shareholding directors to vote in favour of the deal. The deal was completed in May after Clipper shareholders voted in favour.
The CMA served an initial enforcement order, in May, which then prevented the merging parties from taking pre-emptive action that might prejudice the outcome of any potential investigation and invited comments from interest parties as to whether the deal could result in a substantial lessening of competition in the UK.
Having now launched its merger enquiry, the CMA has set a deadline of 10th October to decide whether to refer the deal for an in-depth Phase 2 investigation.