LONDON: CEVA Logistics UK Rose Limited, a subsidiary of French shipping giant CMA CGM S.A., has decided to drop its bid for British logistics company Wincanton plc after a competing offer emerged.

CEVA had agreed to buy Wincanton for £1.2 billion in cash in January, in a deal that would have created a leading logistics provider in the UK. The deal was supported by the boards of both companies and was expected to be completed by the end of March.

However, on 29 February, an unnamed rival bidder made a higher offer for Wincanton, prompting the Wincanton directors to withdraw their recommendation of CEVA’s offer. CEVA said it would not increase its offer price or switch to a hostile takeover, and that its offer would expire soon.

CEVA expressed disappointment with the outcome, saying that its offer was very attractive for Wincanton’s shareholders, employees and clients. CEVA also said it would continue to pursue its growth strategy, backed by its parent company CMA CGM, which is a global leader in shipping and logistics.

CEVA and CMA CGM reaffirmed their commitment to the UK market, where they have a strong presence and a loyal customer base.