The UK's Competition and Markets Authority (CMA) is calling for comments on GXO Logistic’s £965m acquisition of Clipper Logistics as it launches its investigation into the deal.

The CMA is considering whether the acquisition will result in a substantial lessening of competition and is asking for comments on the transaction from any interested parties by the deadline of 16 August.

When the deal was announced in February Clipper Logistics and US-listed GXO said in a joint statement that the merger would create a “compelling strategic combination which significantly increases the opportunities for both businesses in the high-growth e-commerce/e-fulfilment areas.”

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Shareholders voted in favour of the deal, which was completed in May, with Clipper de-listing from the London Stock Exchange.

The CMA served an initial enforcement order in May to prevent both parties taking pre-emptive action that might prejudice the outcome of any potential investigation by the regulator.

However, whilst  the order did not prevent completion of the deal, it does require Clipper to be run independently from GXO until the CMA has completed its review.

GXO, which was spun-off from XPO Logistics in August 2021, has a market capitalisation of $9.3bn (£7.68bn) on the New York Stock Exchange and is the world's biggest pure-play contract logistics company.

CMA’s call for comment comes as GXO’s second quarter results reveal that organic revenue in the period was up 20% year on year,with overall revenue rising by 15% to $2.16bn (£1.78bn), ahead of estimates at $2.11bn (£1.74bn).

GXO attributes its growth to a burgeoning e-commerce and outsourcing market, and its ability to deliver speed and cost efficiencies to its customers in various sectors including retailing, consumer packaged goods, healthcare, and industrials.

Comments from interested parties on the acquisition can be sent to Josh Dawson at josh.dawson@cma.gov.uk

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