Transport firm Wincanton yesterday withdrew its offer for rival TDG after admitting a deal was “not in the best interests of shareholders”.
The Wiltshire-based logistics firm, which works for major retailers including Sainsbury’s, Asda and Argos, tabled a proposal worth £228.6 million in April, bettering an offer made by investment firm Laxey Partners in February. Wincanton carried out due diligence and said last month the board of TDG agreed there was merit in exploring the combination of the two businesses, in terms of how much their operations overlap and sector and geographic coverage.
But Wincanton said it was no longer interested in going through with its proposed offer for TDG, although it has the right to return if Laxey Partners or another third party agrees a deal with the TDG board.
Laxey has until the end of this week to meet a Takeover Panel deadline and declare whether it intends to press ahead with a takeover.
TDG employs more than 7,000 people in the UK, Ireland, Spain, Germany and Belgium.
It works on behalf of firms including ICI Paints, French Connection UK and Kimberly-Clark.
Wincanton did not provide a reason for its withdrawal. It said: “Wincanton has concluded that it is not in the best interests of Wincanton shareholders to proceed with an offer for TDG and has informed the board of TDG of this decision.
“Wincanton accordingly confirms that it has no intention of making an offer for TDG at this time.”
Wincanton shares rose five per cent, while TDG fell almost 10 per cent.